S& p 500 market correction warning is coming

During the month of April, the S&P 500 was destroyed by more than 10 % and closed within 2 % of the closure of the previous month. This only happened five times in the past 98 years. In each case, the market correction follows.

On average, the index has slipped 15.3 % over the next 365 days, according to a famous technical analyst. Subu Trade, Those who highlighted the previous prices in April 30.

At the time of the press, the S&P reached 500 5,650 points, as a decrease of 0.64 % on Monday, May 6, and won a winning series for nine days. On the basis of a year to the date (YTD), the index decreased 3.93 %.

Merchants should wait for a declining confirmation of the S&P 500

Although this event is interesting, readers must take into account two factors. First, no indicator or signal provides a 100 % guarantee. For one of them, the last time this sign appeared in 1938 – it is sufficient to say that the global economy and the stock market have witnessed major changes since then.

This is the nine-day winning series, which is now the longest series of consecutive green days in the past twenty years-so it is clear that there is a great degree of interest in buying.

While the macroeconomic and commercial concerns, such as the latter Decrease in GDP And the idea of ​​the White House Imposing a tariff on filmsContinue to the markets, the last superior performance by the technology sector leaders has made a long way to restore the investor’s confidence.

In addition, there is also no shortage of bullish technical signals. the Zweig market, An indicator generally represents the beginning of the bull marches, was recently flashing.

However, commercial conflicts will continue to control the narration to move forward – Wall Street has made significant discounts in the S&P 500 goals of 2025, so there are multiple factors that must be taken into account.

Distinctive image via Shutterstock