such as the SPX and the DJIA are possible 1974 and 2002 are tow example of v shaped recoveries. The major indexes were able to recover form 50% losses in roughly the same duration as the losses occurred, hence forming a v bottom. So why are v bottoms possible? Why do indexes have such a strong propensity to recover their losses so quickly as seen today? The dow and Sp00z are up 5%.