by Graham Summers
When it comes to analyzing long-term trends, the 10-month moving average has been a great metric for charting long-term bull market vs. bear market changes.
The 10-month moving average has been a great metric for charting long-term bull vs. bear market changes.
Generally speaking (there are of course exceptions) when stocks break above this line, they’re in a bull market. When they break below it, they’re entering a bear market.
However, when you’re transitioning from a bull to a bear market, stocks usually follow a specific pattern in which there is a bounce to “kiss” former support as the bulls attempt to reignite the lost momentum.