The model had forecast to be bullish from Feb 1 of this year into a summer peak for specific type of trend within a long-term bull market. Along the way, investors sold on fear from surging interest rates, followed by surging inflation, followed by the Fed’s June meeting results suggesting stronger than expected inflation. So why were sellers of the stock market wrong? The model creates a net bias of multiple types of traders and investors. A bullish forecast into the summer months was (is) a forecast for the net bias of investors to be bullish.
