How to Play a Stock-Market Correction

Stock markets might just have finished a particularly strong quarter -- with the S&P 500 Index gaining 15.2% for its best quarter since 1998, the MSCI World Index rising by 19.7%, and the MSCI Emerging Markets Index adding 33.6% -- but they started to look tired last month. And July is also off to a shaky start.
Volume has been declining on rally days and expanding on declining days -- which can be construed as bearish action. On July 2, Lowry's Buying Power Index closed one point below where the Index was at the March 9 stock market lows -- i.e. Buying Power is now weaker than it was at the early March bottom. (more)