This is a departure from today’s morning submission, which you can apply To receive in a arrived mail every morning together with:
S & P 500 (^GSPC) He entered the correction closely on Thursday, which means that the reference index withdrew 10% of the last maximum of all time, February 19th.
But whether the S&P 500 officially reached a technical expression used to describe the withdrawal, it may not really be here either there. The key question, of course, is how often these sales are worse. Friday offered at least a very temporary response to that, and the S&P 500 increased more than 2.1 %%, the industrial average of Dow Jones (^Dji) Getting 1.7%and Nasdaq composite (^Ixix) 2.6%.
Interestingly, strategist strategist research on the strategist market Ryan Detrick shows that 10% of corrections do not only happen often, but often become the main event, instead of expanding the bear market, defined by a 20% decrease in the maximum.
Detrick’s work shows that since World War II, S&P 500 has experienced 48 corrections. However, only 12 of these corrections turned into a teddy bear, which means 75% of the time, the correction is not spiral not spiral until the bear market.
“Maybe we get into the correction, but we don’t see the bear market,” Detrick told Yahoo Finance. “Early in the year after the election, Choppiness is normal and that’s what’s going on.”
The fast nature of the recent retreat is usually a good barometer for the way the index bounces off the correction, said BMO Capital Markets Main Investment Strategist Brian Belski. In a research note on Friday, Belski pointed out that outside Pandemia, without a correction since World War II, which happened as quickly as the current bear market.
“These types of corrections that happen so quickly go back and recover equally quickly, if not more,” Beelski told Yahoo Finance. He added that he was doing it “very comfortable” with his goal of 6,700 years for the S&P 500.
“As for the basics, they still flash green, not yellow, not red,” Belski said.
A message that was clear on Friday.
Josh Schafer is a journalist for Yahoo Finance. Follow it on x @@ Joshschafer.
