I’d love to confidently tell you that the worst of this recent market correction is over but I’d have to be up myself or on self-delusional drugs to tell you to assume it’s all up from here. That said, I will build the case that we could be in for better times for stocks, after I deal with the hard to ignore negatives around at the moment.
Follow the leader
First, the S&P 500 index or Wall Street generally will call the tune on what happens to stocks this week and for the rest of October, which has a history of doing what it has been doing over the past four weeks — that is, losing ground quite spectacularly. The index is well below its 200-day moving average, which was 1905 when it dropped below this important gauge of stock market performance.