Chart of the Day - The Dow is down over 25% this decade

Here's an interesting perspective from the folks at Chart of the Day - their inflation-adjusted, big-picture chart of the Dow Jones Industrial Average makes it look like the Dow got support at the prior highs of the 1960's, and bounced above resistance of the prior swing lows of 2002-2003. I can't speak for them in terms of the big-picture forecast. We certainly have our share of views on that, as regular readers know! I'm also wondering if the price level currently is testing a trendline that might be drawn across the tops of the highs of 1929 and 1966 - but even if so, it's an uptrending line so price could work with it and still test somewhat higher. And again remember, this is inflation-adjusted. So let's see what "Chart of the Day" is sharing:

Chart of the Day - The Dow is down over 25% this decade

For some long-term perspective, today's chart illustrates the Dow adjusted for inflation since 1900. There are several points of interest. For one, when adjusted for inflation, the bear market that concluded in the early 1980s was almost as severe as the one that concluded in the early 1930s. Also, the inflation-adjusted Dow is a little more than double where it was at its 1929 peak and trades 65% above its 1966 peak -- not that spectacular of a performance considering the time frames involved. More recently, the Dow has retraced 60% of the financial crisis bear market and is currently testing post-crisis highs. It is interesting to note that the 70% gain produced during the post-crisis rally is actually slightly more than what the inflation-adjusted Dow gained from its 1966 peak to today.

Notes:
- Where's the Dow headed? The answer may surprise you. Find out right now with the exclusive & Barron's recommended charts ofChart of the Day Plus.

Rate today's Chart of the Day
Excellent 5 4 3 2 1 No good
By voting every day you help us get you the charts you want to see.

Quote of the Day
"A man who wants to lead the orchestra must turn his back on the crowd." - Max Lucado

Events of the Day
October 24, 2010 - United Nations Day
October 31, 2010 - Halloween

Mailing List Info
Chart of the Day is FREE to anyone who subscribes.

-- To subscribe, enter your email address

Chart of the Day is provided without warranty of any kind and accepts no responsibility for its accuracy or for any consequences of its use. Journalists and bloggers may post the above free Chart of the Day on their website as long as the chart is unedited and full credit is given with a live link to Chart of the Day at http://www.chartoftheday.com