Another Angle on Levels
For the SPX the mean (and median for that matter) correction was 4.6% in the four instances we can identify since March. The low correction was 3.5% and the high correction was 5.8%. That gives downside % targets for the SPX of 975, 964 and 951 for the low, mean, and high correction target based on the 4 corrections shown in this runup. The average number of trading days it took for these past corrections? A touch more than 5 days. Of course, this analysis suffers from the small sample base (only 4 corrections), so it is rough, but I have found it useful in the past for comparison purposes against the many levels I see bandied about.
For the NDX the levels are: 1239, 1223, and 1204 for the low, mean, and high correction targets, with past corrections occurring about 4.5 days on average.
Though today's (and yesterday's) tape feels impulsive like a correction, the jury is still out, as this market has had more legs than the Rockettes. These are the levels I keep handy to determine how any unfolding correction looks compared to this bull run's brethren. Hope they help.
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