Market Correction: Early Stages, No Rush for Mid-Term Rally

jfsrevg
2025-03-11

The market isn’t as oversold as it might seem. If this is a correction, we’re only in the 3rd week and not even reaching historical pivotal level of % of stocks below 200-MA.

Historically, the stock market has shown the capability of 3 consecutive months of negative MoM closes as recent as August 2023, even in a long-term uptrending market.

Any 3-5 days bounces will certainly not entice me to think the market is shaping for a mid-term rally. It could be quick bounces to an establishment of a lower high, while momentum remains below 20-MA vs 10-MA crosses, along with declining 50-MA at 6.3% above that could serve as an rejection level.

That said, the time to build your watchlist is certainly approaching when MMTW MMFI and MMTH continue its decline nearing 20% level. Those are great period to really swing your position incrementally without a sustain pullback and build your portfolio for period of weeks to months.

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