Isolating A Stock Market Correction: Watch For This
Stocks are trading lower today. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is trading at $155.95, -0.87 (-0.55%). Over the last ten days, the markets have not had two up days in a row nor two down days in a row. This up and down action has kept the markets mostly floating sideways with small pops to make new closing highs on the S&P 500.
How To Recognize When A Drop In The Market Is Coming?
The key here is super simple. Look for two consequetive down days in a row. The only catch is the second day down must close below the lows of the first day. If this happens, further downside is likely in the coming weeks.
Price action today is very bearish with the financial stocks leading. JPMorgan Chase & Co. (NYSE:JPM) is taking a beating, trading at $47.03, -0.95 (-1.98%).