Djvu's  Instablog

Last week we had a huge 3 day rally in S&P 500, where it bounced back from intra low of 1075 on Tue ,4 - Oct -2011) to close at 1165 on Thurs, 6 Oct 2011. That is a rally of +8.5% from intra day lows to close 3 days later.

And US S&P 500 was not alone, other major Stock Indices such as Australia S&P ASX 900 and Hong Kong `s Hang Seng  - both also had a similar rallies of +9%. ( Hang Seng closed at 17,707and ASX closed at 4162)

Now big questions are  - Is this the bottom ? Will the market test the lows again ? or are these just Bear market rallies ? To answer this questions, I have done a study and analyzed S&P 500 performance after such sharp 3 day rallies (during the bear market period).
Detailed post and findings here