Stocks Plunge – What Happens Next?
It’s been a rough couple of weeks for stocks. After about two years of dormancy, volatility is back in the markets with the S&P 500 crossing into correction territory (-10%) for the first time since early 2016. The question on many investor’s minds is, what happens from here?
History suggests a few outcomes may be possible.
According to Goldman Sachs Chief Global Equity Strategist, Peter Oppenheimer, the average bull market 'correction' is about 13% over four months, with about a four-month period needed for stocks to recoup the lost value. At this rate, that could technically mean getting back to even from current losses by this fall! Not an ideal outcome, but remember that averages and history are just meant to provide insights – not forecasts.
Another statistic Mr. Oppenheimer mentions is that if the S&P 500 crosses the 20% mark, which would technically put it into bear market territory, then the ‘pain’ lasts for 22 months on average, with a much longer recovery time before getting back to even.
Most big players in finance such as Goldman Sachs, JP Morgan, Credit Suisse, Bank of America, and others are forecasting a positive year for stocks in 2018, so the bear market outcome appears remote according to their forecasts. Most of the economic data and fundamentals they cite for a positive year remain intact, which gives the impression that what is occurring today in the market is a stock market correction, not a bear.
So, if this is a stock market correction and not a bear, what should investors do next? Famed mutual-fund manager Peter Lynch has perhaps the best advice, when he said that “far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” In other words, if the investor believes this to be a correction, which means it’s a short-term dip in prices, perhaps the best approach would be to see it as a new opportunity to invest in areas that look attractive. Or, do nothing at all.
GS's RSI Oscillator is sitting in oversold zone for 1 day
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GS advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
GS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 23, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GS as a result. In of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
GS moved below its 50-day moving average on February 27, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GS crossed bearishly below the 50-day moving average on February 24, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for GS entered a downward trend on March 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.114) is normal, around the industry mean (8.007). P/E Ratio (15.242) is within average values for comparable stocks, (64.914). Projected Growth (PEG Ratio) (1.385) is also within normal values, averaging (1.589). Dividend Yield (0.020) settles around the average of (0.034) among similar stocks. P/S Ratio (4.263) is also within normal values, averaging (1503216.500).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of investment banking, securities and asset management services
Industry InvestmentBanksBrokers
Advertisement