GLOBAL EQUITIES BULL TRAP | FURTHER DOWNSIDE EXPECTED

• Often in downside and upside moves of large magnitude, a phase is present where a large correction occurs.
  
• This is known as a Bear or Bull trap, respectively.
  
• It is reasonable to say that we could be in a bull trap right now with stocks up by almost 30%
  

• An average market cycle high to low has been in the region of 50-60%. This would bring price to strong support and a reasonable area for a rebound (Buy Zone)
  
• This assumes that this downside cycle will be of the same level or worse than the previous downside cycles.
  
• The reason for such an expectation is due to the extremity of Covid-19 in terms of unemployment, trade, demand shock and other macro-economic metrics/indicators.
  
• Also the fact that the pandemic indicates a more longer/severe cycle due to the nature of the event being so complex and impactful.
  

VERDICT: Signs of a bull trap are becoming increasingly more noticeable and this, along with the extremity of Covid-19, indicates that the crash is expected to continue further.