Have you been waiting around to “buy the dip” on this latest stock market rally?
You’ve been waiting a long time.
Dan Greenhaus at BTIG puts the current rally in perspective, noting that it’s been 78 trading days since the last 5% correction.
We’re getting towards one of the longest post-crisis rallies.
What the chart shows is that the current rally, 78 trading days since the end of the last 5% pullback, is at the upper end of the range during the current recovery. That doesn’t mean it cannot continue of course but it is just another observation worth passing along, suggesting that at least some breather would be welcome. From our client’s perspective though, we’re hearing that the sell-side has been talking about a pullback for a few percentage points now (we’re at roughly 2%). “The market wants to go higher and higher it will go” we’re told. Maybe so but nothing lasts forever and after a rally of this duration, of this magnitude, recent history suggests digestion.
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