With the major upside reversal the week before last, the Dow Jones industrial average and the S&P 500 index have actually risen for two straight weeks for the first time since late November/early December. This has followed the worst January in 38 years, which gave the S&P 500 a 6.1% haircut. So where do the markets stand after all this volatility?
The majority of stock market indexes as well as individual stocks are in primary downtrends and there has been significant technical damage that is very widespread. Some indices and many individual stocks have fallen 20% or more, so they are in bear markets. The S&P 500 at its recent low close had fallen almost 255 points from its October high or 16.3%. The DJIA has dropped 2193 points or 15.5% while the Nasdaq has cratered 567 points or 19.8%.