Also found in: Idioms, Wikipedia.
an insignificant brief recovery that occurs after a steep decline
1. A short-lived rally near the bottom of an otherwise persistent decline in the market price of a stock, often caused by investors covering short positions.
2. An auspicious but ultimately short-lived improvement in an otherwise unfavorable trend.
[From expressions such as even a dead cat will bounce if it falls far and fast enough.]
(Stock Exchange) stock exchange informal a temporary recovery in prices following a substantial fall as a result of speculators buying stocks they have already sold rather than as a result of a genuine reversal of the downward trend
Slang. a temporary recovery in stock prices after a steep decline, often resulting from the purchase of securities that have been sold short.