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10 Reasons to Believe the Correction May Not Be Over Yet

At this point, many investors are struggling to decide if they should (once again) "buy the dip" or if the investment landscape might finally have changed a bit from the "slow, steady, easy money" mode we have been in over the prior 18 months.

(Sentimentrader) Seasonality is only one factor that influences the stock market. And no matter how reliable a given trend may have been in the past, there is never any guarantee that a given security, index, or sector will do "what it's supposed to do" the next time around. That said, several key stock market indexes and sectors have entered - or will soon enter - a period of significant seasonal weakness.


The charts below will give you a general idea.











SUMMARY

So do the charts above imply that the market is "doomed" to trade lower? Not at all. Year-to-year performance can be pretty random. Nevertheless, after ten consecutive months with higher closes by the major market indexes, a period of typical seasonal weakness may be as good a time as any to expect some consolidation at the very least.