Biggest One-Day Stock Rallies More Likely in Bear Markets
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Huge one-day stock rallies are more likely to happen during bear markets than bull markets.
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Only 1/4 of trading days since 1971 were in bear markets, yet 80% of biggest one-day Nasdaq rallies happened then.
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Same pattern in S&P 500 and Dow Jones going further back.
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Reasons include bear market volatility, sentiment being eager for bull signal, and stocks dropping to offer greater upside.
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One big rally does not mean a major uptrend has begun.