Charting The Parabolic Blow Off Stage Of The U.S. Stock Market

Does it feel like the U.S. stock market no longer corrects downward? That's because it doesn't. Since we entered QE4 (dotted red line below), the size of stock market corrections have ranged from 4% to 5.4% and they are getting smaller as we go.

Prior to QE4, during the initial stages of the current bear market rally, corrections ranged from 8.5% to 19.7%. People were nervous back then. Now, any concerns about the market turning down have completely disappeared. Any down draft is looked at as an incredible buying opportunity. Any rally is looked at as an incredible buying opportunity. This process occurs during the final stage of a cyclical market rally.