The following explains the Closing Milestones of the Dow Jones Industrial Average, the most well known economic barometer in the world. The Dow has increased in value by a immense amount since opening at 40.94 on May 26, 1896.

The Dow Jones Industrial Average, like many other stock market indices, undergoes periods of stellar growth and stagnation. The market is considered in a bull market when it undergroes stellar growth, and considered in a bear market when it undergoes stagnation. A new bull market cannot begin until market valuation (measured by way of PE Ratio) is back to multi-decade lows.

Wall Street considers a stock market index to be in a bear market when it is 20% lower than its all-time high. For the Dow, that's approximately 9,378.

There are two types of bull markets. The first type is called "secular" where the stock market index is constantly hitting all-time highs. Secular bull markets can last upwards of 15 years. "Cyclical" is where the stock market index hits a 52-week high or a multi-year high. They last around three years and they usually occur during a bear market.

The following lists the bear and bull markets of the Dow:

• 1896 - 1929 - bull market. Ended with DJIA at 381.17 on September 3, 1929.
• 1930 - 1948 - bear market. The stock market crash of 1929 causes the Great Depression. DJIA plunged to 41.22 on July 8, 1932.
• 1949 - 1966 - bull market. Dow sees stellar growth in the bull market dubbed "The post-World War II boom". Dow starts at around 150 in June 1949, and ends just five points shy of 1,000 on February 9, 1966. PE Ratio reached multi-decade lows in 1949, only to reach stellar highs in 1966.
• 1967 - 1982 - bear market. Traders deal with market that went nowhere as the Dow posted two distinct downturns (in 1970 and 1974) and flirted with 1,000 three times, in 1972, 1976, and 1981, but couldn't successfully break the mark and soar to new heights.
• 1982 - 2000 - bull market. The bulls become supercharged when the Dow posts its most massive growth in history. Going from a meager 777 on August 12, 1982 all the way to 11,722.98 on January 14, 2000.

The Dow Jones Industrial Average has not hit an all-time high since January of 2000. The Dow has already hit one major downturn in 2002.

Closing milestones from the Dow (in 100-point increments):

The first bull market (1896-1929)

The Post-World War II boom (1949-1966)

The 70's bear market (1967-1982)

The Reagan Bull Market (1982-1989)

The 90's Superbull (1990-2000)

See also

• Dow Jones Industrial Average
• Bear market
• Bull market
• Stock market bubble
• Price-to-earnings ratio

External links

• Dow Jones Industrial Average Closing Milestones
• Century of the Dow