Why a 20% Correction Does Not a Bear Market Make

(5/23/22) Breaking through the markets' 20% barrier does not a bear market make, regardless of breathless media commentary. 20% off today's S&P is merely a correction, thanks to the lone-term bullish trend of rising prices remains well intact. On Friday, buying came in in the late afternoon, holding onto support established earlier last week. Markets are looking to move higher this morning--an indication that the bottom could hold, and the first, key test will be right at 4,000, right where its 20-DMA is sitting. However, there are several downtrends with which to be dealt. The good news is that Volatility is not indicating a panic-driven selling bear market. While there is much selling pressure, Volatility has been declining, and the markets' decline has been quite orderly. After eight weeks straight of selling in the Dow, and seven-weeks of similar activity in the S&P, it would not be surprising to see a couple of positive weeks in the markets at this point...offering a great opportunity to rebalance risk and reposition portfolios for what happens later this year as the Fed hikes rates and tightens policy.
Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO
Produced by Brent Clanton
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