According to Yardeni Research there has been 52 (-10%) corrections in the S&P 500 since 1928. If February 8th, 2018 was indeed the low of the latest -10% correction it would be the fastest correction of that entire data set.

Source: Yardeni Research

The median duration of the corrections in that data set is 119 days. So, if instead the end of the correction from January 26th, 2018 bottomed at the median duration date we wouldn’t see a bottom until May 25th, 2018.

More than -20% corrections in the stock market are special events, they occur much less frequently than corrections less than -20%.So in general the market has done a good job so far during this correction correcting in price, but hasn’t corrected in duration for very long compared to past corrections. And based on past data, unless we just set a record, a lower low is in the cards.

Print Friendly, PDF & Email