We had no trouble getting to the 2700 level on the S&P 500, there are now 2 other levels that we could reach as I pointed out in my last post. We are approaching the 2600 level with today’s close at 2648, 2500 is a possibility as well.

The S&P 500 was up 38% from November of 2016 at the most recent top at 2872. We have given up 7.8% since that top was achieved. We have had worse declines during this bull market, though none have been as sharp and quick, this is probably due to the parabolic rise that we saw in January.

I’m sure that most of you have forgotten what happened in August of 2016 through February of 2017. We topped at around 2100 and the decline ended in February 2017 at 1860. The total decline was 15%. While the last 6 days, the last 2 in particular, have been all about shock and awe, the previous decline was protracted. If anything, this correction is removing a lot of speculative excesses. Once this decline is over, it may take more time to reassert itself. a 15% correction would take the S&P 500 to 2440.

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