What Happens After Big Stock Market Drops?
A look at what may be ahead
As I watch the market close Tuesday, it was another day of red. When I had breakfast, the S&P 500 was up 4%. I figured we will have a nice green day. Well, I was wrong!
At the end of day, the S&P 500 finished down 1.6%. That was the first time in history the S&P 500 was up 4% or more and closed down more than 1%.
That shows how volatile and unpredictable this current market environment is.
Over the past 4 trading days, here is what the stock market has done.
The Dow has lost more than 4,500 points or about 11%.
The S&P 500 is down by 12%.
The Nasdaq 100 is down by 13%.
It has been one of the fastest 10% plus corrections in history. Look at how quickly this correction took compared to all the others since 1900.
So what’s next? Is this the bottom? Or could things fall even further from here?
Let’s take a look at what the historical data and charts tell us.