June 7, 20103
the complete subjugation of Continental Europe by the troops of Hitler and the Axisforces. But it was in a recovery from that drop, and seemed quite healthy before thesudden big slide and big AI number seemed to come out of nowhere. The news, as far asI can find (No I was not yet charting markets at that time!) was primarily that the Blitz of London began a few days earlier. But the day marked the exact bottom of a pullback,and led to substantial further advance over the next three months. The message seems tobe that the big AI day came out of nowhere, and was the end of a drop not the beginning.It was six years later that some more large numbers appeared. On February 19, 1946 thereading was 6.13, and then just a few days later on the 25
it was 8.51.Again, the big numbers seemed to come out of nowhere, were not on huge volume, andsoon led to further advance. True, they were not over ten, but they were, in context, verylarge. In this case, though, the subsequent move was small, and was replaced threemonths later with a bigger slide. Searching, with Google, for significant events at thattime, I can find none. It looked like just a hiccup within the long consolidation that led tothe 1950-1966 secular bull market. Did I miss something?
1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1500100015002000250030003500400045005000550060006500700075008000110120130140150160170180190200210220230240250260270280290300310320330340350360370380390400410420430440450460470480490500510
FEBRUARY 19, 1946 6.13FEBRUARY 25, 1946 8.51SEPEMBER 26, 195531.89
DJIA4455 (488.400, 488.400, 488.400, +3.84000)