Are we out of the correction woods?

Founder and Publisher of the Switzer Report
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Key points

  • US will continue to call the tune on what happens for stocks this week and for October.
  • Some are suggesting the Fed could extend QE.
  • Strong earnings season in the US should support markets.

 

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.

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