Yesterday’s sell off in the major indexes was brutal.  The S&P 500 Index fell over 3% for the 20th time since the 2009 bottom.  The Nasdaq 100 was weaker yet.  The tech heavy index dropped 4%, its eighth sell off of this size over the same time frame.(red dots above).  Nearly all of the previous sell offs, since the bear market ended in 2009, took place at or near a significant low.  This time may be different, the rally could be over, for good.  But, history, recent history for that matter, tells us a different story. 

Some perspective, another great tweet from Jim O’Shaughnessy:  Stop. Look at your life. Look at all your yesterdays, that had such great hopes for tomorrow. This is just another day. I’ve lived through so many market bubbles and crashes. Remember what your time-frame is. Is it tomorrow? Don’t invest if it is. Snap your fingers. 20 yrs gone

Chart courtesy of Michael Batnick