Market Correction Can Turn into Bear Market if Across-the-Board Selling Continues

“Sell in May and go away”, says the Wall Street adage. This refers to the often observed weakening of market conditions in the summer after strong gains of the preceding period. The current market action, unless it is reversed by a summer rally, may prove the adage to be right again.

The most worrisome sign of shifting market conditions is the persistency and depth of the selling.  Almost all equity sectors and even some income investments have been impacted by the sell-off that started last Friday. As the result, several Fidelity stock and bond funds have now entered into a bearish downtrend.

The good news is that the chart of our benchmark Fidelity Spartan 500 Index Fund still shows a bullish uptrend, in spite of the recent pull back.


Fidelity Spartan 500 Index Fund (FUSEX, last change: -1.35%)

Fidelity Spartan 500 Index Fund (FUSEX, last change: -1.35%)


Buy/sell signals for Fidelity funds are available at