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When will the stock market stop going down?


When will the stock market stop going down—or, at least, flash signs of stabilization? 

If you’re a rattled 401(k) investor nursing big paper losses after watching stocks go from a bull market to a bear in a matter of weeks, getting an idea of how low the market will go is probably at the top of your I-wish-I-knew list.

Since the Standard & Poor’s 500 stock index was down 30% at its bear market low before rebounding 6% Tuesday after the White House took steps to offset the economic impact of the coronavirus, investors are trying to gauge if more pain is ahead or the worst of the selling is over. 

The truth? Nobody really knows. 

But that doesn’t mean Wall Street pros aren’t analyzing past bear markets, long-term stock charts, coronavirus-related headlines, investor-fear levels and market valuations in search of clues as to when the selling will let up.

When will the stock market stop going down—or, at least, flash signs of stabilization?

Recession is likely here:A downturn has probably begun. How bad will a coronavirus-triggered downturn be?

Store hours curtailed:Target cutting store hours, dedicating weekly time for elderly and vulnerable shoppers

It’s often said that nobody rings a bell at a market bottom, or that market bottoms are “a process.” But there is an array of signals that professional investors look at to help guesstimate when the low might be in.

Here are a few things to watch if you’re searching for a bottom:

Coronavirus infections peak

One statistic investors would like to see before ringing the all-clear bell has little to do with corporate earnings, economic growth or price-to-earnings ratios: it’s a number that shows coronavirus infections are in retreat.



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