Depending on one’s worldview, this glass maybe half full or half empty. If Dow Jones Industrial Average is merely doing a healthy correction like any one of those between 2010 – present, the lowest it will go is a 20% retracement or a 20% discount from the top to entice one to buy something.
DJIA corrections between 2010 – 2015
If DJIA is going to crash like the collapse of the Tech Bubble and the Subprime Crisis, then history tells us that nothing less than 40% off the top will do.
2 periods of major DJIA corrections: Tech Bubble (2000) and Subprime Crisis (2007)
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
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