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Secondary Market Trend

A short-term change in the market direction (upward or downward) where price moves are confined to a primary market trend. The trend lasts from a few weeks to a few months. Secondary market trends come in two different common forms: corrections and rallies. In a correction, there is a short term price decline (between 5% to 20%) which pushes the market downwards, but not into a recession. By contrast, a rally constitutes a market price increase of 10% to 20%.


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