Investors are increasingly looking for that overdue selloff in stocks

Investors who are looking for a big pullback in shares to catch some good deals can wait even longer, if the current price trend continues.

Shares ended higher last Friday. Many market participants are waiting for a big 5% drop of the shares, which will give them good opportunities to buy, said Robert Pavlik, chief market strategist at Boston Private Wealth. The problem is that this kind of sales seems to be slipping as prices managed to climb higher.

For now, S&P 500 has risen 182 days without making 5% correction, which is the longest period from 11 February 2014 onwards.

Pavlik explains that people are hesitant to get in now. Probably looking for a pullback, but that hasn’t happened. Every time there’s selling, the market consolidates and it grows again.

If a 5% selloff is asking too much to find an entry point, even a modest decline has been hard to come by as both the Dow industrials and S&P 500 have gone 108 sessions with a decline of 1% or more.

Following the Fed decision to continue increasing interest rates, a few Fed speakers this week could dictate the direction of stocks, but nothing that would trigger a major selloff that could be construed as a buying opportunity, Pavlik said.

On Monday will speak Charles Evans of the Chicago Fed. The president of the New York Fed, William Dudley, is scheduled for Tuesday. Janet Yellen and Neel Kashkari will speak on Thursday.

Source: MarketWatch

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response