The Stock Market Is Rallying. What Needs to Happen for the Bear Market to End.

The stock market has leapt higher this week, but it needs to hop over several hurdles before it can end this year’s spectacular slump. 

All three major U.S. indexes have gained this week, with the


S&P 500


up more than 2% in a surge that has been fueled by hope, rather than fundamentals. Investors see a chance that the economic outlook will improve, so they are putting to work the billions of dollars in cash they raised by selling as markets have plummeted. The fact that the S&P 500 is still more than 20% below its all-time high and below key levels adds to the appeal of those bets.