Today, the S&P 500 surged 9.5%—marking the third-highest daily return since 1950. Moves like this aren’t typically seen in calm bull markets. Historically, the largest up days often occur during bear markets, closely following major selloffs. It’s the market’s way of violently recalibrating after intense structural repricing.
At Bruce Wood Capital, we’ve been noting signs of a potential near-term bottom and anticipating a sharp rally—but I’ll admit, I didn’t expect something HISTORIC. I misread the magnitude on that one.
The big question now: Was that the bottom? Or just a relief rally before another leg down?
There’s still plenty of uncertainty:
Inflation remains well above the Fed’s comfort zone
Global bond markets are under stress
And let’s not forget a full-on trade war with China
So while yesterday’s rally was a welcome reprieve, we’re not out of the woods yet. A retest of recent lows wouldn’t be surprising.
Stay nimble. Stay focused. Stay vigilant.
