Market 'melt-up': What is it?

The S&P 500 is close to entering bull market territory, and many analysts have been referring to the stock market 'melt-up'. But what exactly is a 'melt-up'?

Yahoo Finance's Julie Hyman explains the recent market 'melt-up' as referring to "the most recent leg of the rally."

Yahoo Finance markets reporter Jared Blikre describes a 'melt-up' as "the market discounting all these bearish headlines that we're talking about recently, and it manages to exhibit some bullish price action."

Sevens Report Research Founder and President Tom Essaye says that a 'melt-up' is "just a Wall Street slang essentially for a market that won't go down, and it basically pulls in skeptical investors."

Video highlights:

00:00:03 - Yahoo Finance's Julie Hyman

00:00:17 - Yahoo Finance markets reporter Jared Blikre

00:00:30 - Sevens Report Research Founder and President Tom Essaye

Video transcript

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JULIE HYMAN: Like much of Wall Street jargon, market melt-up is something fancy that describes something pretty simple. This little bit here is what some market participants are referring to as a melt-up, the most recent leg of the rally.

JARED BLIKRE: What does a melt-up mean? You see the market is discounting all these bearish headlines that we're talking about recently. And it still manages to exhibit some bullish price action. So not anything huge, but just kind of melting up.

TOM ESSAYE: Just a Wall-- Wall Street slang essentially for a market that won't go down. And it basically kind of pulls in skeptical investors. So imagine something sort of melting, and it spreads as it keeps going. And that's what we're seeing.

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