A price rally that emerges as a sharp upward spike in prices following a period characterized by lack of investors’ confidence or sense of certainty. It represents a respite from a market sell-off that eventually bids up prices in for a while. With a relief rally, market participants can see that the correction phase has reached an end, but it would still result in an even sharper correction.
For example, it might be said that: “the outbreak of war triggered a “relief” rally in the stock market that would be expected to continue unabated until year-end”.
Comments