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Stocks trade higher on a rebound on Friday


The S&P index moved closer to its 20% decline level but rebounded

All major US stock indices are taking a break after falling sharply this week. The major indexes are higher with the NASDAQ leading the way with an increase of 2.2%.

A snapshot of the market 15 minutes after the start of the open shows:

  • Dow Industrial Average up 251 points or 0.80% on 31984.36
  • S&P index up 53.5 points or 1.36% to 3983.63
  • NASDAQ
  • Russell 2000 is up 41 points or 2.36% at 1780.43

Yesterday, the S&P index came within a few points of a 20% drop from the all-time high. The markets a 20% move from the highs are seen in a bear market

bear market

A bear market is defined as a financial market in which prices are falling or are expected to fall. This designation is most commonly used in the stock market, but can also be applied to other markets, including real estate, forex, commodities, and more. A bear market differs from periodic declines in assets because of its duration, not its frequency. . For example, a bear market will typically experience long periods in which a large number of stock prices fall over months or even years. Bear Markets Explained Like any asset, moves are driven by speculation and levels of market optimism. In the case of bear markets, investor confidence is low and a driver of declining assets. Of course, multiple factors are involved in any sustained or directional push in asset prices. It influences speculation, psychological effects and other external stimuli. Often bear markets do not have a clear starting or ending point, and do not use any specific metrics in their analysis or identification. On the contrary, the case of the stock market can help define a bear market. For example, if stock prices fall 20%, usually after a 20% rise and before a second 20% rise, it can be assumed that a bear market is in effect. Additionally, bear markets are notoriously difficult to predict, although there are also several different factors that can also help usher in a bear market. Bear markets typically occur when the economy is contracting or during periods of weakness, turbulence or uncertainty. This is supported by weak gross domestic product (GDP) numbers and a sustained rise in unemployment or falling corporate profits. Investor confidence is also a notable determinant, which tends to fall steadily during bear markets.

A bear market is defined as a financial market in which prices are falling or are expected to fall. This designation is most commonly used in the stock market, but can also be applied to other markets, including real estate, forex, commodities, and more. A bear market differs from periodic declines in assets because of its duration, not its frequency. . For example, a bear market will typically experience long periods in which a large number of stock prices fall over months or even years. Bear Markets Explained Like any asset, moves are driven by speculation and levels of market optimism. In the case of bear markets, investor confidence is low and a driver of declining assets. Of course, multiple factors are involved in any sustained or directional push in asset prices. It influences speculation, psychological effects and other external stimuli. Often bear markets do not have a clear starting or ending point, and do not use any specific metrics in their analysis or identification. On the contrary, the case of the stock market can help define a bear market. For example, if stock prices fall 20%, usually after a 20% rise and before a second 20% rise, it can be assumed that a bear market is in effect. Additionally, bear markets are notoriously difficult to predict, although there are also several different factors that can also help usher in a bear market. Bear markets typically occur when the economy is contracting or during periods of weakness, turbulence or uncertainty. This is supported by weak gross domestic product (GDP) numbers and a sustained rise in unemployment or falling corporate profits. Investor confidence is also a notable determinant, which tends to fall steadily during bear markets.
Read this term. The NASDAQ index which fell more than 30% is already in a bear market.

The inability to reach the -20% level gives buyers hope that the correction is over.

Looking at the S&P daily chart, the drop was also less than the 38.2% retracement of the rise from the post-pandemic low. This retracement level comes in at 3815.20. Staying above this level is also a bright spot from a longer-term perspective.

PS. the move lower after the pandemic, saw the S&P plunge 35.41% to the March 2020 low before beginning the bull run to the January 2022 all-time high. The correction from that high this year at around 20% is well below this drop.

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