Benchmark indexes have recouped half their losses in a little over three weeks — perhaps too fast.
The S&P 500 Index, since its Dec. 24 low at 2,351 points, has rallied 13%.
In fact, the S&P 500 SPX, +1.09% Dow Jones Industrial Average DJIA, +1.16%and Nasdaq COMP, +0.79% have recovered about half of last year’s losses. Does this mean the bear market is over?
The weight of evidence suggests yes, but there is one caveat.
In December, the S&P 500 tagged the 48-month SMA (simple moving average), a level that’s ended a number of bear markets.