The U. S. stock market bull has been running for several years. Pulling back and digesting the gains is a normal part of the process. So far nothing has happened outside the parameters of normal volatility.
Overnight S&P futures touched 2000. Here are the probabilities of how far this correction may go:
- Up-move after 1960 – 2000 zone — 20%
- Up-move after a fall into 1920 – 1960 — 20%
- Up-move after a fall into 1860 – 1920 — 50%
- A fall below 1860 — 10%
Our algorithms calculate these probabilities daily.
