Has the Stock Market Bottomed Out?

The February 2018 market correction caught many investors off guard, but the longer-term trend remains higher.

So says LPL Research.  “This year has provided more volatility than we’ve seen in recent years, with many wondering if the movement is a sign that the bull market is ending. Remember that when the market is finding its lowest point (the bottom), the process to get there can be quite frustrating and even confusing for investors. As a result, we acknowledge we are amidst the bottoming process, and we don’t think the bull market is ending, as longer-term technicals continue to look strong, along with sentiment flashing levels of worry seen at other previous major market lows.”Key takeaways include:

  • The S&P 500 has experienced some intense declines, but it may have bottomed for the year.
  • Market technicals suggest the bull market is alive and well.
  • Market sentiment is flashing levels of pessimism consistent with major lows.

To read more from John Lynch, Chief Investment Strategist, and Ryan Detrick, CMT Senior Market Strategist, LPL Financial, click here.