Pro Farmer Senior Market Analyst Rich Posson says a major low is due for the stock market this month. "This trend fits within a larger three-year cycle trend that is up from last October. Analysis suggests this uptrend or bull market is to last into 2016, which makes the current downswing an intra-year correction," he says.
Posson adds that downside potential is likely limited for the stock market and the market may bottom as early as this week. "Some investors believe the stock market bottoms ahead of the economy by as much as six months," he notes.
In the weekly stock index chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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