After last week???s severe drubbing in stocks, the mass of buy-and-hold investors out there is starting to let out a huge sigh of relief. I can???t say that I blame them, especially after last Wednesday???s huge 460-point intraday Dow drop.
Since then, the market has made a notable comeback, but does this mean that the correction is over?
I dare say not.
In fact, it???s typical to see a ???snap back??? rally in markets, particularly after a sharp correction that???s taken the major indices down below their long-term, 200-day moving averages. It should go without saying that markets rarely go straight down, so to see a settling and a subsequent rebound in this market is something to be expected.
Read more about the snap back rally and its potential future implications at Eagle Daily Investor.