Occam’s razor says the stock market is in a downtrend - MarketWatch

Occam’s razor says the stock market is in a downtrend - MarketWatch: "Occam’s razor: The S&P 500 abandoned its long-term uptrend in late August, meaning it is now in a downtrend.

Occam’s razor is the philosophical principle that suggests, all things being equal, the simplest explanation tends to be the right one."

One of the most elementary trading maxims on Wall Street is “the trend is your friend.” That’s basically what all the short-term technical patterns, economic data and earnings reports are used for, to determine which direction the longer-term trend is heading, and whether it’s about to change.

Once that trend is determined, a tenet of the century-old Dow Theory of market analysis says it is assumed to remain in effect, until it gives definite signals that it has reversed, according to the Market Technicians Associations knowledge base. In other words, the trend is your friend, until it isn’t.

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