Tuesday 3 July 2018

Almost a record period of correction for US indices

US stocks are a few days away from a worrying event that will not delight all investors in these markets.
The Dow Jones and the S & P 500 are within a few days of reaching a key level. Be in the corrective phase during February 8th.
It was then that we witnessed the massive sell-offs that brought down the index by about 10% after new records were reached.
Rarely in history, after more serious adjustments of 10%, the indices move in such narrow ranges. Or the indices are in a narrow range of 10% already five months.
By Thursday, both indices - Dow and S & P are in an adjustment phase of 98 trading days. This is the longest such series since the financial crisis.
Then it was 108 days before the market came out of its correction phase.
In other words, if the two indexes remain in the adjustment phase for another 11 trading sessions by July 16, this will outperform this 2008 period and will be the longest similar period since 1984.
In 1984, the S & P 500's broad US index required 122 days to go through the adjustment phase, according to data from the WSJ Market Data Group.


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