The S&P 500 is doing something it hasn’t since 1995, and that could mean a pullback ahead

Posted by jbrumley on September 12, 2017 5:08 PM
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By Annie Pei, CNBC

A striking streak in the S&P 500 Index has Ryan Detrick of LPL Financial calling for a market slip.

As of Thursday, it had been exactly 10 months since the S&P 500 saw a pullback of 3 percent, Detrick pointed out. That makes this only the second-longest streak without a 3 percent pullback that has been since 1928, beaten by an 11-month run that took place from the end of 1994 to December 1995.

That extended rally suggests stocks may be overdue for a downturn. Looking forward, Detrick concludes that the market is long overdue for shallow pullback.

"Could we keep going higher without a lot of volatility? It's possible, but we just think it's been awfully long so that a normal correction this time of the year makes a lot of sense to us here," the market strategist said last week on CNBC's "Futures Now."

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At the same time, Detrick says that investors shouldn't react too nervously once that long-awaited drop takes place.

"It's just important to remember that whatever the reason may be when that inevitable correction happens, [investors should not] panic," he said. "The economy still looks good, and potentially, this bull market still has a long way to go. It's just near-term, things look dicey."

From CNBC

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