Stocks have broken down in a big way, leading investors to ask…
Is this a garden variety correction… or the start of a REAL crash?
The S&P 500 sliced through its 50-SMA and plunged down to its 200-SMA in a matter of days. We haven’t seen a collapse like this since the regional bank crisis of March 2023.
First and foremost, you should know that market dips/ pullbacks are quite common.
Consider that stocks will typically pull back 5%+ three or four times every year. Larger drops aren’t that uncommon either: the market corrected 10% or more in HALF of the 20 years from 2002-2021.
Anyone who panicked and sold the farm when that happened ended up missing out in a big way!
Having said that, this correction has been quite violent. Many of the market’s leaders are down 20%+ which technically would be considered “bear market” territory.
Moreover, the Volatility Index (VIX) has spiked to levels that are typically associated with crises. See for yourself in the chart below.
Thus, investors are in a quandary.
One the one hand, corrections are common events in which you should “buy the dip.” But on the other hand, once every 10 years or so, a REAL crash/ bear market will hit that will wipe out years’ worth of gains!
So obviously, investors need a tool for determining whether stocks are simply correcting in the context of a bull market… or if a legitimate crash/ bear market is about to unfold.
I’ve developed a tool that takes ALL of the guessing work out of this problem. With just one look at this tool, you can tell whether it’s a good time to buy stocks or not. I detail it, along with what it’s currently saying about the market today in a Special Investment Report How to Predict a Crash.
To pick up a free copy, swing by
Best Regards
Graham Summers, MBA
Chief Market Strategist
