Sharp falls of at least 15% have a strong tendency to have their original low retested in the weeks/months ahead. That is true even, as now, a sharp 10% bounce occurs. But what is notable this time is the persistence of the gains each week, and the exceptional breadth (participation) that has driven the indices higher.
This is important because, in the past 70 years, this has never taken place within the context of a bear market. In fact, breadth momentum like this is often associated with the start of new bull markets. Net: the Christmas low may still get retested, but it seems likely to hold and new highs are probably ahead. Nothing in the stock market is ever guaranteed, but this has been the consistent, historical pattern.
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The bounce that started on Christmas Eve continued this week. SPX gained for a third week in a row, adding 2.6%. NDX was up 3% and small caps were up nearly 5%. Volatility fell 10% (table from alphatrends.net). Enlarge any chart by clicking on it.