Stock market basics
Bear market rally
Definition
A sharp rise inside a bear market that fails before a new high. Several can happen before the final low.
Example
Imagine an index falls from 4,000 to 3,000, then jumps 12% to 3,360 in three weeks. The rally stalls well below the 4,000 high and the index slides to a new low of 2,800, so the bounce turns out to be a bear market rally. Only in hindsight is it clear which low was the final one.
Hypothetical numbers, for illustration only.
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