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Market Forecasting Tutorial (Part 2)
This is the second part of a 3-part series on market forecasting. Part 1 can be found here.
As you recall, the Dow made an all-time high in October 2007. Since then, it has made lower lows and lower highs, typical of a downward trend.
But how far and how long will this bear market last?
First of all, we need to remember that the previous bullish rally was quite fast, with the lion's share occurring over 6 months (May to October 2007) for around 18% gains.
What does that mean?
Well, in my opinion, it means the bullish rally was not that valid.
Remember, price validity strengthens with time.