With volatility comes opportunity. And what volatility! Thursday saw the biggest intraday gain in the S&P 500 since the wild swings as stocks were approaching their lows in March 2020. On Friday much of the rise was given back. Could the opportunity be that—whisper it—the swings are a sign that the great bear market of 2022 is finally getting close to bottoming out?
The truthful answer is that no one has a good explanation for the huge price moves. There is talk of short-covering, psychologically important levels for the so-called market technicians and put options reaching payout points, but none can be proven.