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Snap Back: Is the Correction Over?

Since last weekâ??s severe drubbing in stocks, the market has made a notable comeback, but does this mean that the correction is over? I dare say not.

After last weekâ??s severe drubbing in stocks, the mass of buy-and-hold investors out there is starting to let out a huge sigh of relief. I canâ??t say that I blame them, especially after last Wednesdayâ??s huge 460-point intraday Dow drop.

Since then, the market has made a notable comeback, but does this mean that the correction is over?

I dare say not.

In fact, itâ??s typical to see a â??snap backâ?ť rally in markets, particularly after a sharp correction thatâ??s taken the major indices down below their long-term, 200-day moving averages. It should go without saying that markets rarely go straight down, so to see a settling and a subsequent rebound in this market is something to be expected.

Read more about the snap back rally and its potential future implications at Eagle Daily Investor.

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbertâ??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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Snap Back: Is the Correction Over?

After last week’s severe drubbing in stocks, the mass of buy-and-hold investors out there is starting to let out a huge sigh of relief. I can’t say that I blame them, especially after last Wednesday’s huge 460-point intraday Dow drop.

Since then, the market has made a notable comeback, but does this mean that the correction is over?

I dare say not.

In fact, it’s typical to see a “snap back” rally in markets, particularly after a sharp correction that’s taken the major indices down below their long-term, 200-day moving averages. It should go without saying that markets rarely go straight down, so to see a settling and a subsequent rebound in this market is something to be expected.

Read more about the snap back rally and its potential future implications at Eagle Daily Investor.

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