This is not going to be an extensive post, but I did want to make folks aware of something. As of today, the 50-week simple moving average for the S&P 500 stands at 1472.94. The S&P 500 index, itself, closed at 1433.27. That places the index about 2.7% below the 50-week moving average. If we go back to 2004, then we will see that this has not been a bad place to think about entering the market.
I do not think the downtrend is over. I can actually envision two or three scenarios where we make a final thrust down to around 1400, or roughly 5% below the 50-week moving average. Nevertheless, those investors who pride themselves on buying the dips would not be unreasonable to begin looking for opportunities to do so at these levels.
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