HOMZ - Where's The Downside Tipping Point For U.S. Stocks?
2024-04-17 07:25:00 ET
Summary
- On Apr. 15, the market closed 3.7% below its previous peak - a drawdown that’s irrelevant in the grand scheme of market history for peak-to-trough declines.
- Every bear market starts with a relatively soft, innocuous slide, however, so there’s a case for keeping an eye on a shorter set of moving averages as a possible early warning sign.
- Market valuation is high and recent volatility has been low – a combination that suggests the odds of a market correction are elevated vs. recent history.
Yesterday's sharp slide in US equities has refocused minds on a hardy perennial: the market can and does go down. Obvious, of course, but easy to overlook when prices are rising virtually non-stop, as they have been for much of the past six months - until now....
Where's The Downside Tipping Point For U.S. Stocks?