Last weekend I gave an explanation of the anatomy of bear market rallies. At that point, many of them were very bearish on the stock market, and most believed that a bear market was underway. The violation of the uptrend (line c) on May 21 indicated that that particular bear market rally was likely over. This often clarifies the chart formations, which is important in helping one determine when a bear market rally has truly ended. Later this month, I will look at how Fibonacci analysis can be used to project downside targets once a bear market rally has ended.

Source: Forbes April 04, 2020 19:07 UTC