Last week’s rally was the result of multiple interventions.
“Someone” took advantage of the extremely light holiday volume to ramp markets higher via indiscriminant buying. The media is trying to portray this action as the result of “investors” or “value seekers” but neither of those groups was involved.
This was a clear and obvious buying program made by “someone” who didn’t want stocks to officially enter a bear market by falling 20%. One of the key “tells” that this was manipulation is that underperformers like banks and homebuilders didn’t lead the rally.
Normally during real market bottoms, the underperformers turn first and rally hardest as REAL buyers and value investors put in REAL buy orders.
That didn’t happen. Both sectors lagged on the bounce.