US Stocks Stages Monster Relief Rally

The other day the US stock market rallied hard, but unfortunately, it faltered at the end of the session. I called it the Pump and Dump. 

Yet yesterday’s losses added to the recent stock market woes that have been plagued by a string of quasi crashes.

Last night, the bulls made sure that it would end on a positive note. Not only did it close up, US stock markets staged a monster rally, the biggest since 2011

From the CNBC: (bold mine)

U.S. stocks shot higher on Wednesday, rebounding from six consecutive days of declines that pushed the major averages into correction territory.

In addition to an oversold bounce, some analysts also attributed the gains to comments from the Fed's William Dudley that a September rate hike looks "less compelling" and a strong durable-goods report.

The major averages closed about 4 percent higher for their best day since 2011, with the S&P 500 rising out of correction territory. The index fell into correction during Monday's selloff.

Among the 10 S&P 500 sectors, tech, financials, health care, consumer discretionary and staples are all out of correction territory. The companies in the index gained about $640 billion in market capitalization on Wednesday, but have still lost $268 billion in capitalization this week and are down $1.3 trillion over the last week-and-a-half.

The Nasdaq Composite closed on the edge of correction, up 4.2 percent on the day. The Dow Jones industrial average remains in correction territory.

Gains accelerated into the close, with the Dow Jones industrial average ending up about 620 points after rising as much as 637 points.

Well there you have it.

For an oversold condition to find legs for a massive rebound, it required another soothing statement from the monetary politburo that easy money conditions will stay.

Yet such kind of monster rally we have also recently seen…but just across the Pacific Ocean

Will US stock markets be different?