The market really did take it on the chin in both October and December.
One friend suggested that the sharp drop prompted rebalancing flows into equites from large institutional investors as stock/bond/other asset class levels were out of guideline with the equity decline.
This could be behind part of the January rally, but of course the Fed's change in tone has been important, too.
In any event, the rally came directly back to the 200 day moving average and also right back into the congestion level of the October lows, both areas that any technician would point to as a likely spot for a "rally failure."
Put your thoughts in the comments, folks.
One friend suggested that the sharp drop prompted rebalancing flows into equites from large institutional investors as stock/bond/other asset class levels were out of guideline with the equity decline.
This could be behind part of the January rally, but of course the Fed's change in tone has been important, too.
In any event, the rally came directly back to the 200 day moving average and also right back into the congestion level of the October lows, both areas that any technician would point to as a likely spot for a "rally failure."
Put your thoughts in the comments, folks.