Just last week, traders and analysts were speaking of “capitulation”—a sign of panic, feverish selling, awful sentiment—to determine if the financial markets were crashing and nearing their bottom.
Yes, selling has been pretty frantic as the Nasdaq recently fell 12% in a week—declining in magnitudes rarely seen. Some even pointed at the small proportion (15%) of the S&P 500 stocks trading above their 50-day moving average. A trend that is meant to be indicative of a near-term bottom market.
But the markets continue to surprise.
This week, global stocks have pushed up as traders move back into riskier assets after the worst streak of weekly losses for equities since 2008.
According to JP Morgan, equity markets may have priced in