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.
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