Saturday, April 4, 2020 3:04 PM EDT
We are two weeks into the rally phase of the intermediate-term cycle that began this week. The magnitude of the last decline phase signals the likely move to a bearish intermediate-term trend and favors losses during the next decline phase.
In this article: SPX
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Stock Market Continues Test Of Critical Support Level
That is an excellent question, Alexis, and worthy of a long, in-depth discussion. However, the short answer is that market prices are based on the decisions of all market participants, regardless of whether they are basing those decisions on rational, fundamental data or irrational imperatives such as greed and fear. Essentially, market behavior reflects the sum total of all knowledge and emotion driving the decisions of its participants.