Investors will be happy that next week is the final one of 2022. The outgoing year proved to be a trying year for both professional and retail investors. As of this writing on December 21st, the S&P 500 is down over 18%, the NASDAQ
NDAQ
From an O’Neil Methodology perspective, bull markets start with a successful Follow Thru Day (FTD), defined as an increase in the market averages of 1.7% or more on higher volume than the preceding day. However, in a bear market, we expect there to be 4-5 false FTDs that undercut their previous established low before the market finally bottoms. As shown on the tables below, this bear market has had a typical number of failed FTDs and the pump-fake bear rallies have been roughly in-line with history, on average.
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