Today, I'm going to show you some relatively simple techniques that will (hopefully) help you learn how to forecast market direction and timing. And I am going to look at the current market conditions to illustrate these points.
Although market forecasting is arguably the single most important skill an investor can possess, it is rarely mentioned. With little surprise, it is perhaps the most difficult skill to master. When market forecasting is mentioned, most analysis emphasize volatility indexes, oscillators and other indicators like put/call ratios, market breadth, Rydex funds, money flow, etc. While these indicators are often helpful, they are insufficient for forecasting market direction and timing.