From Corey Rosenbloom: How far have the “Big Three” US Equity Indexex pulled back, what level tips them into a “Correction,” and what level throws us into a new Bear Market?
Here’s a new Reference Grid for you to determine the exact levels – as of right now.
What we’re seeing is the Dow Jones Industrial Average, S&P 500, and the NASDAQ.
Given that the current 52-week High holds, these are the future pullback levels to define “Correction” or “Bear Market.”
If this pullback is all we get and the market rallies back to new highs, then we just saw a (roughly) 2.5% pullback in the Dow and S&P 500 and a 4% pullback in the NASDAQ (based on the 52-week high and this morning’s spike-reversal low).
Here are your simple reference levels going forward.
For a CORRECTION, the Dow must reach 19,961; S&P 500 reach 2,242; and NAS at 6,396.
Though it seems incredibly far-fetched at the moment, to tip the indexes into a 20% pullback or “Bear Market,” levels include
17,743 in the Dow; 1,993 in the S&P 500; and 5,169 in the NASDAQ.
Bookmark and continue using this reference grid UNTIL we get a new 52-week high in an ongoing Bull Market… and then I’ll happily and bullishly update the grid!
The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) closed at $216.53 on Friday, down $-1.28 (-0.59%). Year-to-date, DIA has gained 10.88%, versus a 9.58% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of AfraidToTrade.com.