Stock Market Volatility Not Uncommon

Sometimes after selling some positions during a correction, you look back at history and say, “Hmmm….this has happened before and holding was the right thing to do”. The current correction may morph into a full-blown bear market, but the odds still favor a rally sometime in the next eight weeks or so. 1998 is an example from history where holding turned out to be the proper move. The current market needs to be monitored closely with an open mind, but making decisions with knowledge of how markets have behaved in the past can be extremely helpful at times. We compare 1998 and 2010 below - followed by what happened in 1998 after the correction ended.

Historical Stocm market Corrections
1998 Correction Followed By Big Gains

The CCM Bull Market Sustainability Index (BMSI) currently stands at 1,056 and remains in concerning, but neutral territory. We mentioned the 500-day and 480-day last week. Below is an updated chart as of Tuesday’s close.

Stock Market Risk-Reward Analysis