Zooming out and looking at the big picture you can observe some long term trends and similarities.
Ever since the world economic crisis at the end of 1920s and beginning of the 1930s you can find a long-term bull market which was regularly interrupted by some short to mid-term bear intervals. Coincidentally a series of two big declines within 7 - 10 years are touching the lower trend line and laying ground for another powerful 30 year bull market.
Based on this historic observation you can elaborate on a scenario where the SPX is likely to enter a bear market within the upcoming year(s) until it again hits bottom of the long-term trend line. As I said it is just one possibility and history does not necessarily have to repeat. It tells me at least that now might not the best time to buy into the market. I'll wait for the possible big discount to come. If that won't happen I haven't lost anything, but if it does I can utilised bigger uptrend potentials.
Ever since the world economic crisis at the end of 1920s and beginning of the 1930s you can find a long-term bull market which was regularly interrupted by some short to mid-term bear intervals. Coincidentally a series of two big declines within 7 - 10 years are touching the lower trend line and laying ground for another powerful 30 year bull market.
Based on this historic observation you can elaborate on a scenario where the SPX is likely to enter a bear market within the upcoming year(s) until it again hits bottom of the long-term trend line. As I said it is just one possibility and history does not necessarily have to repeat. It tells me at least that now might not the best time to buy into the market. I'll wait for the possible big discount to come. If that won't happen I haven't lost anything, but if it does I can utilised bigger uptrend potentials.
