Is the Stock Market Correction Over? A Flawless Forecasting Tool With Over 150 Years of Data Weighs In.
This valuation tool has an immaculate track record of foreshadowing big directional moves in the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite.
Over the last month, Wall Street has reminded professional and everyday investors that stocks don't, in fact, move up in a straight line.
Since the closing bell on Feb. 19, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and innovation-inspired Nasdaq Composite (NASDAQINDEX: ^IXIC) have respectively shed 6%, 7.8%, and 11.8% of their value as of March 20. To add, the S&P 500 and Nasdaq Composite declined by at least 10% from their all-time highs, which placed both indexes in official correction territory (as of March 13).
However, none of these three major stock indexes have fallen below their respective March 13 closing lows, which begs the question: Is the stock market correction already over for the S&P 500 and Nasdaq Composite, or is Wall Street simply clearing its throat ahead of a steeper decline?
