Is a Market Correction Just Around the Corner?

I’m sure that title might have given you some pause or even a little concern if you’re a bull.  After all, who wants to be the last one out the when someone yells fire in the theater?  Yet, we know markets do not move in one direction always, they go up and down.  Markets get overbought to the upside and require a pause.  They get overdone to the downside and bargain hunters step in.  But it is at those moments when the markets are ready to turn when we are stuck between ‘stay or go’. 

We have overwhelming feelings of FOMO, or ‘fear of missing out’ if the markets are running away without us.  That seems to be the case this month as many were expecting a selloff and opportunity to get on board.  But as we know, the markets are not that accommodating to any particular notion.

So, we have the indices in nosebleed territory as we are ending the year on a high note.  Many are expecting a correction to take place, they just don’t know when it’ll be or start.  The bulls-eye is on the target and lately there is has been little buying interest as the indicators slowly turn to bear signals.

Yet, price is the primary indicator – and if it is not going down then we have to respect the trend.  We are not going to call a top here in the market, just being aware that this recent rally could cool off a bit.  The ultimate frustration?  How about the markets churning sideways, working off some pricing conditions and then vaulting higher.  Yeah, that would give everyone fits —  that’s about right!