The stock market ended the week higher for its best week in over a year. But the question is, is this just a bear market rally, or have we seen the bottom and its blue skies ahead?
The DOW rose 274.17 points or +0.80% to close at 34,754.93, its fifth day of gains to close out the week. The S&P 500 gained +1.17% to reach 4,463.12, and the NASDAQ added 2.05% to end the day at 13,893.84. Both indexes surged for a fourth consecutive day.
On a weekly level, the S&P 500 notched a +6.16% gain, the DOW posted a weekly gain of +5.50%, and the NASDAQ outperformed with a monster gain of +8.18%. These gains helped the indexes post their best week since November of 2020.
If you're not familiar, a Bear Market Rally refers to a sharp, short-term price increase in a stock or market amid a longer-term bear market period. Unfortunately, investors can sometimes misinterpret bear market rallies as markers of the end of a bear market, so they must be treated with caution.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 4,157.87
- Dow (INDEX:DJI): 32,578.73
- NASDAQ (NASDAQ:COMP): 12,555.35
- U.S. Dollar (ICE:DX): 96.77
- Gold (NYMEX:GC.J22): 1,946.20
- Crude Oil (NYMEX:CL.K22): 93.41
- Bitcoin (BITCOIN:BITSTAMPUSD): 45,332.38