Needless to say, investor anxiety is running high. CNN’s Fear & Greed Index has swung from a reading of 70 indicating “Greed” down to just 7 indicating “Extreme Fear” in the span of just one month.
Market blogger and Chartered Market Technician Ryan Detrick looked for other instances of similar market turmoil in previous Octobers. Detrick found that since 1950 there have been 7 other years that were positive year-to-date going into October and saw the S&P 500 turn negative year-to-date during the month. “The good news”, he writes, “is the final two months were higher 6 times and up 4.1% on average.”- Ryan Detrick,CMT (@Ryan Detrick) October 25, 2018