The stock market has suddenly encountered an identity crisis. Over the three trading day stretch, stocks posted what is now the seventh worst trading day of the year on Tuesday followed by the best trading day of the year on Wednesday followed by the fourth worst trading day of the year on Thursday. Such violent swings have frayed the nerves of many investors that had become accustomed to a market that existed for so long with little volatility. But standing back from the daily trading noise and looking at the market from a broader view can be helpful in keeping today’s correction in perspective. And recent history can also offer some clues as to what a bull market peak actually looks like and whether we are currently in the midst of one today.
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