A rally is a period of sustained increases in the prices of stocks, bonds or indices. This type of price movement can happen during either a
bull
A bull is an intact (i.e., not castrated) adult male of the species '' Bos taurus'' (cattle). More muscular and aggressive than the females of the same species (i.e., cows), bulls have long been an important symbol in many religions,
incl ...
or a
bear market, when it is known as either a bull market rally or a bear market rally, respectively. However, a rally will generally follow a period of flat or declining prices.
[Investopedia Definition o]
Market Rally
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An increase in prices during a primary trend bear market is called a ''bear market rally''. A bear market rally is sometimes defined as an increase of 10% to 20%. Bear market rallies typically begin suddenly and are often short-lived. Notable bear market rallies occurred in the Dow Jones index after the 1929 stock market crash leading down to the market bottom in 1932, and throughout the late 1960s and early 1970s. The Japanese Nikkei 225
The Nikkei 225, or , more commonly called the ''Nikkei'' or the ''Nikkei index'' (), is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the ''Nihon Keizai Shimbun'' (''The Nikkei'') newspaper since 1950. ...
has been typified by a number of bear market rallies since the late 1980s while experiencing an overall long-term downward trend.
See also
* Market trend
* Business cycle
Business cycles are intervals of expansion followed by recession in economic activity. These changes have implications for the welfare of the broad population as well as for private institutions. Typically business cycles are measured by exami ...
* Trend following
References
{{Stock market