In just one week, the number of S&P 500 stocks that are trading in an official bear market trend has increased from 125 to 168, punctuating the delicate balance that stocks are trying to maintain as we head into the New Year.
The steady increase in stocks shifting into long-term bear market trends has implications for the broader market as we head into 2025. The negative momentum that is building is likely to create a headwind for stocks that will make the market vulnerable to a longer, deeper correction for the first time in more than two years.
There are a few ways to determine whether a stock is trading in a bear market.
This post originally appeared at Money Morning.