#MarketRebound
A market rebound refers to a recovery in prices after a period of decline or downturn in the financial markets. It often occurs after a sell-off or correction, when investor confidence returns and buying activity pushes prices back up.
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๐ Key Features of a Market Rebound:
Occurs after a dip or crash: It follows a correction (drop of 10%) or bear market (drop of 20% or more).
Driven by positive news: Examples include strong earnings reports, central bank actions, improved economic data, or resolution of a crisis.
Short-term or long-term: Some rebounds are quick and brief ("dead cat bounce"), while others signal the beginning of a sustained bull market.
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๐ Example Triggers of a Rebound:
Trigger Type Example
Economic News GDP growth, low inflation
Central Bank Policy Interest rate cuts, QE
Corporate Earnings Strong quarterly results
Global Events Peace after geopolitical tension
Market Psychology Investors buying the dip
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โ Signs a Rebound Might Be Real (Not Fake):
High volume of trades
Broad market participation (many sectors rise)
Sustained gains over multiple days/weeks
Technical indicators (e.g., RSI, MACD crossovers)