In Brief: All I keep hearing at the moment is how we will have a 10% correction, so, let’s have a look:
The “funnymentalist” community, particularly Stateside, seem pretty happy with the idea that this pullback will be a “normal” affair and will pull back 10% from the January highs, at which point you can happily pile in, buy the dip, and carry on where we left off…
I thought it would be useful to know where this level is on the markets we watch. So here goes, and we’re looking at the Cash Indexes here, NOT the Futures:
Dow: High was 10730. 10% pullback level is 9657 (currently 10023)
S&P 500: High was 1150, pullback level is 1035 (at 1065 right now)
NASDAQ: High was 1897, pullback level is 1707 (1743 now)
DAX: 6094 was the January high, 10% off that is 5485. BROKEN
FTSE: 5600 high, 5040 is 10% pullback. 5033 was last week’s low, so holding…
Eurostoxx: Pulled back from 3044. 10% back from here is 2740. BROKEN
CAC: high was 4088, so 10% back from there is 3680, BROKEN.
So to summarise, if anyone stateside says to you about 10% pullbacks the simple thing to say is “thanks, but we’re already beyond that!”… especially if/when the FTSE breaks 5030-40.
Keep safe in these markets.