During the 2001 bear market, the Nasdaq had seven relief rallies of 20% or more. This was the FIRST relief rally of 17% or more during the bear market of 2022.
There are a lot of worries about the big picture, and there are a lot of bears on Wall Street. Nerves are high, and any setback makes people feel sick.
The Volatility Index (VIX) is back in the “chop zone,” so you can expect strong moves up and down in the near future. Again, this is a very emotional market, and people look at any news with a lot of doubt. We haven’t seen inflation this high in more than 40 years. Also, keep in mind that almost no money managers today were alive when inflation was this high for this long.