Bear Market Rally

  

Categories: Trading, Index Funds, Charts

A bear market rally is a short period where the market prices rise, even though the market has been low recently. It's also sometimes known as a "sucker rally," because people sometimes think "Hey, the stocks are going up!" and buy up accordingly...not realizing it's just a little blip and likely not to last. Sometimes the rally only lasts a few days, sometimes a few months.

There's no official percentage defined anywhere, but, generally, an increase of 5 percent or more during a bear market counts as a rally.

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