Back to top

Free: Subscribe to Profit from the Pros

Zacks' Bull Stock of the Day, morning market e-briefing, strategies for picking the best stocks, funds, ETFs, and options plus more.

Join 500,000+ investors in-the-know.

Privacy Policy


View the PFP Archive

Consolidation or Correction?

I thought the stars were lining up for a correction this April after the market reached new highs. Well, we got the new highs. We even got some weak economic reports. Amazingly, there has only been a -3.8% pullback to date, which does not make the grade for an actual correction (5% is the minimum drop for that designation). This retreat only gets labeled as a consolidation period within a bull market.

Indeed a correction may still be on the way, which is the focus of my latest Real Time Insight post. However, the more I think about it, the less likely I think it becomes. Meaning that the odds are now pointing to this just being a consolidation period before stocks stretch out to even higher highs.


It's a combination of two things. First, is "The Natural Gravity of the Stock Market" philosophy I shared with you all back on February 15th. Second, is that investors are no longer as easily shaken by the latest media hyped fear mongering. Instead every momentary dip is just seen as a buying opportunity. That mentality pushes the odds towards more upside on the way.

You never know what tomorrow brings and how stocks react to that news. But for right now, I will start putting my foot back on the accelerator pedal with expectation of the S&P hitting 1600 and beyond.

Featured Commentaries:

•  Roundtable Top Picks for the Week

•  Go Green with These 3 Clean Energy ETFs

•  Anatomy of Success: Long-Term (PETM)


Steve Reitmeister

Executive VP -

Zacks Investment Research

Follow Us:  


Any One of These 25 "Loser Stocks" Could Wipe Out All Your Profits.

Companies have been using every trick in the book to eke out an extra penny come earnings time. But none of their tricks are working. If you don't dump these zombie stocks now, you'll be left holding the bag when their stock is punished.

Get instant access to Hilary Kramer's brand-new Stock Blacklist--It's yours FREE today.

Bull & Bear of the Day

Zacks Rank #1 Strong Buy

Conn's (CONN)

While some "big box" retailers are in decline, a family name you've never heard of is growing its everything-for-your-home business.


Zacks Rank #5 Strong Sell

Rackspace (RAX)

Is the cloud having its "commodity pricing" moment? This provider of hosting services is certainly feeling the competition.

Stock Picking Strategies

Profit Margins Will Determine Your Portfolio's Bottom Line  ››

New Highs Justified by Market Internals  ››

6 Stocks With Hot Earnings Streaks  ››

Funds Commentary

Top 5 Zacks #1 Ranked Growth Mutual Funds  ››

Time to Buy This Corporate Bond ETF?  ››

iShares Debuts 4 Target Date Bond ETFs  ››

Options Strategies

Profiting With Straddles This Earnings Season  ››

Video Reports

Earnings and Increased Volatility

See what Zacks experts have to say about these two key market themes.

May Market Outlook

What Are the Fresh Insights Into the Spring Market?

Do Charts Say Big Correction Coming?

Assessing the damage and finding a silver lining.


3 Ways to Make Money from Market Volatility

Today, Zacks members are invited to download a revealing Kevin Matras Special Report for FREE. Our Zacks research expert strips away the mystery from three powerful, often misunderstood strategies that have been steady, conservative money makers in up-and-down markets like we're seeing now.

You probably never even heard of two of them. Don't miss Kevin's step-by-step explanation of how he personally made +98.7% in less than five months.

Get the report free >>

Manage Your Newsletter Subscriptions

Update Preferences         Update Your Profile         Unsubscribe         Feedback         Send to a Friend

This free resource is being sent by to our subscribers. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable.

All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, brokerage, market making or asset management activities of any securities. Visit for information about the performance numbers displayed in this press release.

Zacks Emails

If you would prefer to not receive future profit-producing emails from the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email

Zacks Investment Research, Inc.
111 N. Canal St., Suite 1101
Chicago, Illinois 60606