Part B - continuation and technical analysis:
Despite the sharp correction, the possibility of a 'year-end rally' still exists, one of the most beloved events in the stock market!
Usually, a year-end rally occurs after breaking an historical pattern; this year's pattern is the year-long ascending channel in the leading indices.
It can be seen in the attached chart (S&P-500) that the indices traded at an all-time high a bit too much, which created a 'double top' formation at $4700 - from there we were sent into the expected correction.
Despite the sharp correction, there is currently no reason to panic:
Supporting the index are the 100-day moving average + support at $4500, with the bottom of the ascending channel below at $4450.
Additionally: below the channel there is strong support in the $4250-$4300 area.
In my estimation, as long as we are still within the channel, every dip is for the purpose of an ascent.
Given that the market has become accustomed to dealing with new variants and the whims of Fed Chair Powell, a 'year-end rally' is not out of the question.
It is important to note: we are still in a sensitive and tense period in the markets - it is important to place stop-losses, to pay attention to proper risk management - to act wisely, prudently, and with sound judgment and common sense.
Nothing stated herein constitutes a recommendation, personal opinion only. Anyone using this information does so at their own discretion and personal responsibility only.