The major stock market indexes are in a corrective phase, with the S&P 500 (INDEXCBOE: .INX) falling over 8 percent (high to low thus far), while the Nasdaq (INDEXNASDAQ: .IXIC) and Russell 2000 declining over 10 percent each.
The toughest part of any bull market is stock corrections… largely due to the increase in volatility – as evidenced by the Volatility Index (INDEXCBOE: VIX).
Market volatility tends to trigger investor emotions… and that makes us want to take action.
These actions can be useful if they are part of a rational plan that is simply being executed according to rules.
However, the majority of the time, investors take action in an effort to relieve their anxiety or unrest… typically by selling their holdings/securities.
In this week’s video we’ll look at several price indicators, analyze the moving averages, and put the current price structure of the stock market in the context of history and past bull markets.
Weekly Stock Market Video – October 15
Click play, then you can use the button in the lower-right corner of the video image to view in full-screen mode. Hit Escape (esc) to exit the full-screen mode.
Twitter: @CiovaccoCapital
The author or his clients may hold positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
