My answer in one word is no. That’s not to say the markets won’t go lower. They will. But it appears to me that we are testing the bottom for the third time this year and three is usually a magic number.
It appears the “sell in May and go away” slogan was simply postponed a month this year. June witnessed over an 8% decline so far in the Dow Jones Industrial Average reaching a level last seen in 2006. On Friday it crossed into official bear territory with a full 20% decline from its peak in October of last year. That’s important because once an index declines 20% it is officially in a bear market. The NASDAQ has already attained that dubious position leaving only the broader, more representative S & P 500 still officially “only” in a correction although it was down almost 9% in June. (more…)