Last week After the S&P 500 fell to the brink of a bear market decline of 20 per cent, this week the urge to buy the dip resurfaced. The S&P 500 rose 2.5 per cent to 4,158.24 Friday notching its best rally since 2020.
To bulls, gains of this breadth are characteristic of bottoms, a kind of mass realization that sufficient damage has been done to prices already. Skeptics say it is completely normal in bear markets for emotions (and short-covering) briefly to take over and drive prices higher in a nearly unanimous way.
Volatility has been the rule in 2022 as uncertainty over the Federal Reserve’s policy path and its impact on the economy emboldens extreme views
https://www.bnnbloomberg.ca/big-up-week-for-everything-is-latest-sudden-twist-for-traders-1.1771620
Leave a Reply