”The US equity market has now corrected by approximately 10%, prompting investors to question whether this downturn presents an attractive buying opportunity or signals deeper underlying risks.1 To address this question, we shift our focus to technical and sentiment indicators, which form an essential part of our investment decision-making toolkit. By analyzing market price action, we aim to better understand investor behavior. Our focus is on asset prices. As we show below, an examination of supply and demand indicators provides insights into the likelihood of a market rebound or further setback. We begin with an historic perspective. Since 1950, the S&P 500 Index has experienced 38 corrections, defined as declines of 10% or more. Of these, 26 occurred during periods of positive economic growth, while 12 took place during recessions.”
Morten W. Langer
