The S&P 500 closed 6.66% away from the highs yesterday. After today is it 10.2% away and officially in a correction. February 2016 was last time it was in a correction. This is the first time in history the S&P 500 went from a new all-time high to 10% correction in 9 days or less.

Could another bounce in the price of Uncle Sam’s debts be in the cards?

 continuous contract, last 10 years

March T-Bond Futures

The market has gone 18 months without a 5% pullback, the longest in history. At some point, the market will pull back as profit-taking takes over. Until then enjoy the ride.

The US economy is in its third-longest expansion since 1854 and has been growing for eight years and seven months. Another 1.5 years of growth will make the expansion the longest one on record.

Market observations.

The streak is intact.  Stocks rallied from a shallow opening dip to leave the S&P 500 at its fifth straight record close to begin the year, while Treasurys finished little changed across the curve.  Crude oil caught a bid despite a stronger dollar, with WTI crude again testing $62/barrel.  Fourth quarter earnings season will soon get underway, with J.P. Morgan Chase & Co. set to report results on Friday.