The S&P 500 had been consistently making new highs for 3 years, and investors were feeling great. So, when the collapse of leading Wall Street bank/broker Bear Stearns hit the proverbial fan during the summer of 2007, the stock market reacted, and caught many by surprise. History shows us that the best thing investors could be doing during the summer of 2007 was preparing for the fall…and I don’t mean autumn. That said, it does seem that this time of year is when the market’s headline indexes like the S&P 500 and Nasdaq 100 start to shake a bit, before descending into full-blown declines. In most of these cases I charted the S&P 500 and Nasdaq 100 (via the QQQ ETF) from the beginning of August one year to the end of February the next year.

Source: Forbes August 29, 2017 15:45 UTC