How low could the S&P 500 go? It is no secret that stocks tend to retrace 50% of a rally in a bull market. In S&P 500 terms the average could decline to 1200-1225, which is about the halfway point between the bottom of July 2010 and the peak of February.
What I found interesting is that this range is also the top of the S&P 500 in April 2010.
Right now the S&P 500 stands at 1295. The S&P 500 could decline another 7% (give or take a reasonable margin of error).
When will the bottom could take place, if the above scenario becomes a reality? We have developed several indicators giving us the duration of the decline. More details in The Peter Dag Portfolio.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked second best gold timer by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.
Disclaimer.The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
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