1597 is now the all time high for the S&P 500. Yet after climbing to those heights on April 11th the S&P has fallen to as low as 1536.
That is a 3.8% decline. And technically speaking a correction calls for a minimum drop of 5% (anything greater than -20% is called a Bear market).
So which do you think is taking place now?
1) Consolidation : We will not reach -5%. Stocks are just consolidating now to make a push to 1600 and beyond in the future.
2) Correction : We have not seen the end of this market correction. When all is said and done we will make it down to 1517 or lower. (1517 = 5% lower than 1597). After the correction, stocks will return to their bullish ways.
3) Bear Market: The 4 year bull party is over. Time to pack up your bags as stocks will decline 20% or more in the coming year.
Place your vote below. And don't forget to say why you think that is the case.
SPDR-DJ IND AVG (DIA): ETF Research Reports
ISHARES TR-2000 (IWM): ETF Research Reports
NASDAQ-100 SHRS (QQQ): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
