Stock-market charts of the day
These present two very different views of the recent rally. The first shows it to be a strong bounce off a deep low, which brings us back to a point which is perfectly normal for a recession. The second shows the bounce to be smaller, and largely a function of the weak dollar.
My feeling is that looking backwards at charts of where we’ve come is never a useful way of working out where we’re going. But the first chart does a good job of explaining why we’re all breathing so much easier now than we were in March, and the second chart does a good job of keeping us sober. And raises the question: if the euro weakens against the dollar, could that precipitate a broad-based stock-market fall?