Market Watch
Tomi Kilgore
Feb. 7, 2018
If you want to figure out whether the stock market is crashing or just correcting, you need to be more than just a math whiz. You also have to know a little about interest rates and the economy, and have a little experience.
One of the defining characteristics of past market crashes, like those in 2000 and 2008, and let’s not forget 1987 for the old timers, was that everyone knew they were crashes. You didn’t need to figure out the percentage decline from a high, or check the latest economic reports for signs of a recession or runaway inflation, or scan the charts for breaks of key trend lines or moving averages — people just knew.
Meanwhile, in the recent bout of weakness, many market pundits have been quick to point out that pullbacks and corrections are a “normal†and “healthy†part of any bull market. The current selloff only seems different because it was so long overdue. Besides, the so-called fundamentals, such as economic data and corporate earnings growth, are supportive of medium- and long-term gains.
More...
https://www.marketwatch.com/story/was-that-a-stock-market-crash-do-the-math-and-check-the-yield-curve-2018-02-06
