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The stock market sell off continues. And it’s to be expected.

The S&P 500 has now gone 131 sessions without touching its 50-DMA. This is the longest streak since 2007 (almost 20 years). Based on this alone, the odds were quite high that the S&P 500 would correct to touch its 50-DMA.

However, this is nothing to panic about. High yield credit, which typically leads the S&P 500, is signaling that most of the decline is over.Stocks might have another 1%-2% downside to go, but they should find their footing relatively soon.

What happens then is critical: the #1 question for investors is if this is going to be a garden variety correction or if it’s the start of another bear market/ crisis.

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