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

Folks, this stock market continues to surprise many to the upside, but we've been looking for a March low to give a "spring"board (pun intended) to another rise into the summer. This week's market movements sure look like that's underway. I marked the KI$$ (Tm) position at the right side of the page accordingly. (Notice how the $SPX closed right by 1313 - that's an interesting number.) Why don't we take a look at the big picture to start the weekend? Fortunately the folks at http://www.chartoftheday.com/ had the same idea. So below is their long-term, big-picture chart and brief discussion. I think it's very interesting that the market did a decade-long consolidation that tested toward the inflation-adjusted highs of the 1960's. The idea of the market moving substantially higher over the next few months doesn't seem outlandish in this context! Sure - I'll note that Prieur du Plessis has a fascinating bit my readers will want to know, at Ex-Goldman Sachs analyst: “Major war” coming end of 2012 (Investment Postcards from Cape Town, 3/15/11); includes an interesting video clip as well. But that long-term cycle view doesn't project a subsequent big low until 2013, which is consistent with what some of our best cycles analysts are saying too. So meantime, consider how a rally into the summer will look in these long-term charts, thanks to "Chart of the Day" (below):

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. Of interest is that the inflation-adjusted Dow has traded within the confines of an extremely long-term upward sloping trend channel over the past 111 years. It is also of interest that the secular bear market that concluded in the early 1980s was almost as severe as the one that concluded in the early 1930s. Also, while the market action from the inflation-adjusted record high of 1999 to the financial crisis lows of 2009 was severe, the magnitude of this decline was much less than what occurred with the bear markets that concluded in the early 1930s and early 1980s. More recently, the Dow has retraced 74% of the financial crisis bear market with the inflation-adjusted Dow currently trading 19% off its 1999 record high -- a rather dramatic turnaround considering the magnitude of the recent financial crisis. Notes: - Where's the Dow headed? The answer may surprise you. Find out right now with the exclusive & Barron's recommended charts of Chart 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 "Those who do not remember the past are condemned to repeat it." - George Santayana Events of the Day April 01, 2011 - April Fool's Day April 04, 2011 - NCAA men's basketball championship April 05, 2011 - NCAA women's basketball championship April 07, 2011 - Masters golf tournament begins (ends April 10th) Mailing List Info Chart of the Day is FREE to anyone who subscribes. -- To subscribe, enter your email address 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, do follow, text link to the Chart of the Day homepage at http://www.chartoftheday.com/. 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.