Market Correction In Full Effect For US Stock Market Averages

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

Dow Jones Industrial Average

Dow Jones Industrial Average

 

NASDAQ Composite – 1 year, daily chart

NASDAQ Composite

NASDAQ Composite

 

Standard and Poor’s 500 Index – 1 year, daily chart

Standard and Poor's 500 Index

Standard and Poor’s 500 Index

 

Russell 2000 Index – 1 year, daily chart

Russell 2000 Index

Russell 2000 Index

 

Thanks for reading and always use a stop loss order.

Dave

This post originally appeared on See It Market

 

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