Is A Stock Market Correction Imminent? | Seeking Alpha
Eric Parnell has written a very good article about why we are probably near a stock market correction. He showed a picture of the S&P 500 where stocks were continuing to rise in price but the Chaikin Money Flow has dramatically decreased. Moreover, small caps stocks have diverged to lag since April, and mid-caps recently started to separate downward from the S&P upward trend. This all means that large caps will probably correct sometime in the near future. Eric also gave a helpful list of exactly what percent of loss will occur when the S&P falls to various support lines. For example, if the S&P falls to 1879 and its 150-day moving average, that will be a -5% correction. The 150-day line is where the S&P rebounded during the February 2014 correction.
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