During the 2000 bear market the NASDAQ rallied 40%, 28%, 41%, 50% and 36%. All of them nothing more than bear market rallies with few stock working from breakouts. Many BO traders got cut into ribbons because they couldn't resist the temptation to jump in for fear of missing out. pic.twitter.com/NuOaxTl0VE
— Mark Minervini (@markminervini) July 21, 2022
Today’s Chart of the Day was shared by Mark Minervini (@markminervini). Its a chart of the Nasdaq Composite, throughout the bursting of the dot com bubble. The Nasdaq has bounced about 13% from its lows in recent weeks. However, it’s still in a bear market, down about 25% from its highs. Mark reminds us that bear market rallies can be seductive, but dangerous. As you can see, the Nasdaq had several double-digit rallies in the process of losing nearly 80% of its value overall.