November 13, 2008
All three indices jumped more than six percent today, an event so unusual, that only three other closes since 1950 exceed this magnitude. October 21, 1987 is the earliest date; then the three indices gained between seven and ten percent. The other two events are more recent, occurring just a month ago, on October 13 and 28.
The common element of these dates is a substantial decline, following these spurts in prices. Indeed, plotting the 1987 price line of the S&P500 illustrates the relationship between a vigorous drop in prices at the end of the downturn and the impending recovery. The diagram below illustrates these events.
NASDAQ 6.50 percent
S&P500 6.92 percent