Tackle Today: Bear Market Numbers
June 14, 2022
«Here’s what you should know about Bear Market numbers.»
Traders,
Wall Street defines a bear market as a 20% drop from the highs. We initially reached that threshold on May 20th when the S&P 500 fell 20.7% on an intraday basis. But it didn’t close below the -20% line. An intraday rally prevented it.
But with yesterday’s plunge, it’s now official. The S&P 500 closed 22% off its highs. Of course, the Russell 2000 and Nasdaq have long since entered bear country, but the S&P 500 joining them is symbolic for headline writers and fully captures the decline’s depravity. Today’s chart should provide some clues if you’re wondering what comes next. It includes all previous bear markets back to 1950 with their accompanying statistics. The average decline is approximately -30%, and it took 11 months before the bottom was finally found.
If we follow an identical path (we won’t), SPY prices will trough at $336 (we’re currently at $375) around December of this year.
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Today’s line up
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