Bear market rallies
- news and surprises follow the trend
- shorts cover on bad news creating buying pressure and bear market bounce
- optimists and bottom catchers adding to the momentum, pushing prices further
- as stock goes higher, some shorts didn't get out in the first surge, trying to stay the course and wait for prices to stall
before covering
- more value buyers starting to wait out for better prices/ pull backs for entry.
- volume dries out.
- shorts sensing the weakening surge stops covering their shorts and adds to their shorts.
- buyers sensing prices to come lower stops buying.
- more bad news hammers the market, bringing the realities back to the buyers, buyer stop buying.
- shorts adding to the decline.
- price goes to new lows.
