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Why the Stock Market Rally Is Bad News

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Oct. 22 (Bloomberg) -- Bloomberg Rankings analyst Douglas Lavanture explains what may have triggered the market rebound this week. He speaks with Bloomberg's Mia Saini on "Bottom Line." (Source: Bloomberg)

U.S. stocks had their biggest rally in a year on Oct. 21. The S&P 500 has now recovered in a blink: a 5 percent rise since Oct. 15, reversing a 7.5 percent drop.

Bummer. Long-term investors barely had a chance to jump on one of the market’s best buying opportunities in years. They've been waiting for discounted stocks for a long time. The S&P 500 hasn’t had a bargain bin since a couple brief drops in 2012. Neither met the definition of a correction, a drop of 10 percent or more. The last extended double-digit declines were in 2011.