What’s Next After the Bounce?
Since the famous lows at 666 in 2009 all bigger corrections in S&P 500 have looked and behaved pretty much the same:
- The first part of the correction has been rather quick taking the index down by 12-14%
- The subsequent bounce reached the upper part of the Bollinger band
- The next move down revisited the recent local low and in a few instances the index briefly made new local lows
If history repeats or only rhymes is to be seen, but this is how the bigger corrections looked like:
Source: charts by Bloomberg