Whenever a market peaks, investors, financial advisors, and the media raise the alarms about a major sell-off. The S&P 500 and Dow Jones Industrial Average peaked less than two weeks ago. The Wall Street media in its unconscionable effort to sensationalize information and sell news at any cost immediately predicted a market collapse that will dwarf the great depression, sending everyone into panic mode.
Fortunately, cooler heads occasionally prevail and look at the overall picture more realistically. According to Jon C. Ogg of 24/7 Wall Street, a market correction is inevitable, but there are several key indices to watch that put the condition of the marketplace in perspective. Keep in mind that no matter what the indicators say, none of them signal serious or grave concerns for the broader markets in unison. The entire market is not going to collapse overnight.
Nonetheless, if half of the key issues to watch grow beyond the threshold levels, then there will be too many items occurring simultaneously to ignore. The eight items to watch are: The 10-year Treasury; Russia and Ukraine: gold prices; oil, black gold; alternative energy; market volatility—the VIX; momentum stocks; and biotech.
Ogg concluded his article saying there are more things to consider. However, the aforementioned appears to be a reasonable guide to predicting trends so investors can respond to the market appropriately instead of reacting to hype generated by the Wall Street media. Chicken Little and Henny Penny have time to put their eggs in the right baskets. The sky is not falling today.