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Zacks #1 Stocks on the Move 05/14/2013

Company Name Symbol %Change
INTEROIL COR IOC
9.57%
INFORMATION III
9.47%
A M R CP AAMRQ
6.83%
SCIENTIFIC L SCIL
5.26%
PACER INTL I PACR
5.23%
Steve Reitmeister

Consolidation or Correction?

by Steve Reitmeister

April 22, 2013 | Comments : 27 Recommended this article: (0)

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

1597 is now the all time high for the S&P 500. Yet after climbing to those heights on April 11th the S&P has fallen to as low as 1536.

That is a 3.8% decline. And technically speaking a correction calls for a minimum drop of 5% (anything greater than -20% is called a Bear market).

So which do you think is taking place now?

1) Consolidation: We will not reach -5%. Stocks are just consolidating now to make a push to 1600 and beyond in the future.

2) Correction: We have not seen the end of this market correction. When all is said and done we will make it down to 1517 or lower. (1517 = 5% lower than 1597). After the correction, stocks will return to their bullish ways.

3) Bear Market: The 4 year bull party is over. Time to pack up your bags as stocks will decline 20% or more in the coming year.

Place your vote below. And don't forget to say why you think that is the case.

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