The S&P 500 Just Did Something Seen Only 5 Times in 80 Years. Here's What History Says Happens Next.

Perhaps you've heard the saying "stocks take the stairs up and the elevator down." That's ringing very true right now after a huge sell-off in the stock market fueled by U.S. President Donald Trump's latest round of tariffs.

The S&P 500 (SNPINDEX: ^GSPC) fell 17.6% from its mid-February high through Monday's close. The Nasdaq Composite and Russell 2000 have already fallen more than the requisite 20% to declare a bear market, as tech stocks and small-cap stocks have been hit harder by the proposed tariffs.

While bear markets -- where the major indexes drop more than 20% -- are fairly common, the S&P 500 recently did something for just the fifth time in the last 80 years. Each of the previous four times saw the same reaction from investors, and it could signal a big move in the stock market going forward.

Continue reading