The Dow Industrials index has rallied back to within 4% of the "six-bear average" path, based on recoveries after previous large US stock market declines – see chart and prior post for more details. This follows a 10% undershoot in early July.
The average moves sideways into the autumn; the Dow may struggle to exceed it without an improvement in liquidity indicators. (As a follow-up to yesterday's post, the Eurozone monetary base fell again last week – the fourth consecutive decline.)