Markets are responding primarily to liquidity flows, not on stocks but also commodities.
Crashes do not typically occur in straight lines. Even they have a structure, with period of bounce and recovery. Each positive sign will probably be taken as the bottom.
Between late 1929 to 1933, the stocks market drop about 90%. During that period, there were 9 rebounds, on average 24% each rebound.
So, why does not many talk about liquidity nowadays? M1, M2 & M3.
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