We knew it was coming. It was only a matter of time.
We’ve been in the longest bull market run in history — more than 3,450 days.
There have been dips, like in early 2020 during the COVID-19 pandemic, but stocks rebounded and indexes went on to set fresh highs this year.
That was until September came along.
This week, the market has bounced between gains and losses. This could be an indication of a market correction on the horizon.
In this episode of The Bull & The Bear, I’ll tell you what the trends show us about a potential market correction.
P.S. Adam O’Dell will release details of his new Wednesday Windfalls strategy live on September 23. During the live event, he’ll show you how a simple two-day trade has beaten the market by 51 times over the last six months. To sign up for the live event, click here.
September Index Performance Could Point to a Market Correction
Bull markets don’t end because of old age.
That said, studies show that a stock market correct happens about every 17 months — it’s been 12 months since the last correction during the COVID-19 pandemic.
There are a lot of factors that can lead to a market correction:
- Stock valuation.
- Interest rates.
- Inflation
All of these metrics can cause a stock market correction.
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite started the month on a high note.
However, after September 3, the S&P (green line) and Dow (orange line) started to turn down. It took the Nasdaq Composite (red line) until September 7 to follow suit.
As of the market close on Friday, all three had negative returns for the month. The Dow dropped 2.1% since September 1, while the Nasdaq fell 1.7% and S&P 500 fell 2%.
Things could be lining up for a stronger market correction in the near future.
The Bull & The Bear
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Safe trading,
Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He is a certified Capital Markets & Securities Analyst with the Corporate Finance Institute and a contributor to Seeking Alpha. Prior to joining Money & Markets, he was a journalist and editor for 25 years, covering college sports, business and politics.