Call it the Hail Mary approach. Stocks are trying for a desperate recovery from the failure that has gripped them all year, and to work out, everything has to go just right.
The S&P 500 hit this year’s low just over a month ago; it has risen about 8% since then, and smaller stocks are up more than 10%. For that low to be the base for a new bull run, there is one basic requirement, and an important follow on.