Correction!

It appears to me at this time that a correction in the stock market is imminent. The condition I believe we are seeing is similar to the mid-March to mid-April period this year. At that time, the market seemed to be overbought and ahead of where it should have been. That correction, in hindsight, appears to have been a mid-bull-market correction, which is usually a correction of 10% or more, as was that correction. It also lasted about four months. The coming type of correction is usually more of a modest correction of 2% to 5%. I would not be surprised to see the S&P 500 drop to the 1160 range. It should be short-lived. This is a healthy event for the market, as the correction should lead to a longer-term healthy market advance in an ongoing bull market. All and all the skeptics are still worried about the direction of the economy, but it seems to me to be advancing, though modestly. Ed Mallon