On Monday, Berge Consulting Group indicated that the main Wall Street market averages (DJI) (SP500) (COMP:IND) may still have further downside risk ahead before making a notable reversal to new highs.
“While we do not believe that the recent weakness is the beginning “In a significant bear market environment, we believe the correction must continue before technical conditions improve sufficiently to allow a resumption of the primary uptrend,” Berge Consulting Group said in a report to investors.
The investment institution added: “It has only been a few weeks since this correction began, a correction that will likely last at least a couple of months. By the time this correction is over, we expect stock index averages to have fallen by more than 10%, but less than 20%.”
Average Market Price Action: On Monday, the Dow (DJI) is -0.5%The S&P 500 (SP500) is -0.1%and the Nasdaq Composite (COMP:IND) is +0.2%.
Market participants who wish to keep a close eye on the latest movements in the broader market can turn to benchmark-focused exchange-traded funds to gauge investor sentiment.
Market Tracking ETF: (DIA), (DDM), (UDOW), (DOG), (DXD), (SDOW), (SPY), (VOO), (IVV), (RSP), (SSO), (UPRO), (SH ), (SDS), (SPXU), (QQQ), (QQQM), (QLD), (TQQQ), (QID) and (SQQQ).
