Dead Cat Bounce
A brief recovery during a steep decline that fizzles out, after which the fall continues.
In plain English
A brief recovery during a steep decline that fizzles out, after which the fall continues.
The grim phrase comes from the saying that even a dead cat will bounce if dropped from high enough. A dead cat bounce is a short rebound that tempts buyers back in before the slide resumes.
It is easy to label only in hindsight. That is the trap: every bounce looks like the bottom while you are in it.
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