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Here’s what to expect from your stocks after huge one-day market rallies - MarketWatch

1. COMP surged 12.2% on April 9, the largest since 2001. 2. Historically, massive one-day rallies often precede declines. 3. Average losses follow significant gains in both COMP and S&P 500. 4. Rallies typically occur during bear markets, increasing volatility. 5. Psychology of bear markets contrasts sharply with bull markets.

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FAQ

Why Bearish?

Historical precedents show that post-rally corrections are common. The only comparable rally in 2001 led to substantial losses.

How important is it?

The article connects directly to COMP's performance history during similar patterns. Insights about volatility and bearish trends are highly relevant.

Why Short Term?

Losses typically follow within one to three months post significant gains. Recent trends suggest imminent corrections.

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