A rebound market occurs when the prices of stocks or other financial assets experience a temporary recovery after a significant decline. This can be caused by a number of factors, including:
Causes
1. *Investor purchases*: Investors may see the decline as an opportunity to buy stocks at lower prices.
2. *Technical analysis*: Technical indicators can signal that the market is oversold.
3. *Positive news*: Positive economic or corporate developments can influence the market.
4. *End of panic selling*: Investors may stop selling after a sharp drop.
Features
1. *Rapid recovery*: Prices rise quickly after the fall.
2. *High Volatility*: Prices can vary significantly during the rebound.
3. *Limited duration*: The rebound may not last very long.
