A Short History of Dead Cat Bounces

By Ben Carlson of A Wealth of Common Sense

After falling more than 4% the previous Friday and nearly 3% last Monday, the S&P 500 closed at a drawdown of almost 34% from all-time highs.

Things were looking bleak for the market but then a funny thing happened — it finally started going up…in a hurry.

A 9.4% gain on Tuesday was followed by a 1.2% increase on Wednesday and a 6.2% advance on Thursday, good enough for a 3-day surge of 17.6%.

There was a chorus of market prognosticators who reminded us that…. Read More