Stock-market charts of the day

By Felix Salmon
October 7, 2009
Dshort and Clusterstock both have eye-catching stock-market charts today:

" data-share-img="" data-share="twitter,facebook,linkedin,reddit,google" data-share-count="true">

Dshort and Clusterstock both have eye-catching stock-market charts today:

four-bears-large.gif f.gif

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?

One comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see

Since the S&P 500 has earnings overwhelmingly in US Dollars and, I would presume, stockholders who are overwhelmingly US-based, why would the strength of the Euro matter?

Posted by right | Report as abusive