Has The Correction Run Its Course?

At 19x forward earnings, the S&P 500 still appears expensive which heralds lower returns over the months ahead. Technicals are marginally more attractive now, with 56% percent of the industries trading above their 200-day moving average. However, historically, the market has rarely bottomed out until more than half of industries were trading below their long-term moving average. Therefore, it is likely that the market pullback has not run its course just yet.