Here’s another great chart from Doug Short (dshort.com), the master of overlaying markets on top of each other.
Here is a new overlay of five world markets since March 9, 2009. The start date is arbitrary: The S&P 500 hit a low on March 9th, the Nikkei 225 on March 10th, the DAX on March 6th, the FTSE on March 3rd, and the Hang Seng 4.4 months earlier on October 27, 2008. However, by aligning on the same day, we get a better sense of the present-day synchronous behaviour of the markets than if we align the lows.
You almost have to feel sorry for Japan, the world’s biggest loser, once again.