An article on Bloomberg overnight highlighted the ‘historic’ nature of the S&P 500’s rally over the last 10-trading days as the biggest gain since 2009. The chart below shows the S&P 500’s 10-day rate of change going back to the start of 2000, and as you can see, there hasn’t been a larger gain over a similar span since March 2009. Anytime you start hearing comparisons to March 2009, it’s enough to get any bull excited as that kicked off what was the strongest bull market of all time.
When making market comparisons, though, it’s always important to keep perspective and not focus on just one data point. A perfect case in point is the example below. While it is true that the period in 2009 kicked off a period of exceptional market returns, back in the bear market from 2000, there were no less than five different periods where the S&P 500 saw larger moves over a ten-day span before the market could find a firm enough foundation to rally from.