October Market Lows and the End of Bear Markets

October started strong and then slid to new lows but managed to rally back toward the month’s end. As noted in “As Buybacks Return:”

“The Dow is on pace for its best month since 1976. It is also close to its best month since 1938. So far, the Dow is up four straight weeks (+14%) and is posting its biggest 4-week gain since April 2020. Despite dismal FANG earnings, the Nasdaq is ‘only’ up 5% on the month.”

With those gains, it was not surprising to see articles flipping bullish. To wit:

“Here’s a little news flash. Tech stocks have entered a brand-new bull market that could be the start of a massive 50%-plus melt-up. And certain tech plays could see a 10X surge higher!“

So, did October mark the bottom and the end of the bear market? Or is this rally that fails as the bear market continues?

The honest answer is no one knows for sure. However, as Yahoo Finance recently noted, October market lows did historically mark the end of bear markets more often than not.

October Market Lows, October Market Lows And The End Of Bear Markets

As Stock Trader’s Almanac’s Jeffrey Hirsch recently noted:

“Not all indices have bottomed on the same day for all bear markets, but the lion’s share, or bear’s share I should say, bottomed in October.”