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https://institutional.fidelity.com/app/item/RD_9894630/a-correction-in-stocks-may-be-indicated.html?pos=T

A Correction in Stocks May Be Indicated

2020-07-01 15:57:08, , source

Content Categorization
/Business & Industrial
/News/Business News/Financial Markets News
/Finance/Investing/Stocks & Bonds

Word Count:
800

Words/Sentence:
33

Reading Time:
4.00 min

Reading Quality:
Intermediate

Readability:
9th or 10th

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Corrections tend to be short-lived-unlike bear markets which can be protracted periods of decline.

The notion that the market needs a rest is supported by the 2009 bull market analog below.

Back then, following a rally of a similar duration and magnitude, the SPX corrected from June 11 until July 8 (one month).

A bull market analog

Daily data for the S&P 500 as of 6/10/2020.

It's starting to look that way with the S&P 500 (SPX) down nearly 6% from this week's high, as of mid-day Thursday.

At least, the global money supply remains up and, especially after yesterday's Federal Open Market Committee (FOMC) meeting, there are no signs that any of this is about to change.

The chart below shows that wave five equals wave one, and waves two and four retraced a similar amount of waves one and three (37%-43%).

Technicals

Keywords

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