July Correction Now Officially Over

Oct. 3.07 | About: SPDR Dow (DIA)

Monday's gain in the Dow sent the index above July 19th levels to new records, and for our records marked the end of the correction. In 20 trading days (28 calendar days) the Dow traded down 8.25%, or 1,154.63 index points close-to-close. This was the seventh such correction in the current bull market, where the average decline was -7.97% over 33 calendar days. The recovery was remarkable, occurring in 46 calendar days where the average for this bull market has been 146 calendar days.

The S&P remains below its high close, although (as has been mentioned on several occasions) we have found the Dow to be a better measure for technical studies and of market sentiment.

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