Greece couldn’t do it. Poor company earnings along with lower forward guidance couldn’t do it. Not even strong hints of a September rate hike by the Federal Reserve!
A technical market correction in the stock market is typically referred to as a drop of 10 percent from the highs.
It took a slow down in the world’s number two economy, China, to force this stubbornly bull market into a market correction.
Let’s take a look at the 4 major indexes to see where we are after Friday’s gouge of the Dow Jones Industrial Average (DJIA) where it gave up -530 points.
Three indexes have hit their 10% market correction level with the Standard and Poor’s 500 being shy of the mark. But all four will likely be in correction land when the markets open Monday – the futures market looks very heavy.
Notes are on the charts below. Click charts to enlarge.
- Dow Jones Industrial Average = (10.3%)
- NASDAQ Composite = (10.05%)
- Standard and Poor’s 500 Index = (7.67%)
- Russell 2000 Index = (11.08%)
Dow Jones Industrial Average – 1 year, daily chart
NASDAQ Composite – 1 year, daily chart
Standard and Poor’s 500 Index – 1 year, daily chart
Russell 2000 Index – 1 year, daily chart
Thanks for reading and always use a stop loss order.
This post originally appeared on See It Market