There are lots of different kinds of drops the market can\nprogress through, including pullbacks, corrections, crashes, and bear markets. While\nthere is no universally accepted definition for each of these, there is some general\nconsensus on the ranges of drops they entail.<\/p>\n\n\n\n
In this article, we\u2019re going to specifically dive into some\nresearch on a very specific scenario: corrections in the S&P 500. We\u2019ll\nspecifically use data for its most popular tracking ETF, SPY, in order to have\na reliable proxy for the larger US equity market.<\/p>\n\n\n\n
What is a\ncorrection?<\/h2>\n\n\n\n
We\u2019re going to use a 10% drop from the all-time high as our indication\nthat the market has entered a correction. Once the correction has been entered,\nthat correction cycle will be considered active until the market reaches a new\nall-time high. Once that happens, we can look back to analyze the complete\ncorrection cycle with the following milestones:<\/p>\n\n\n\n
- The previous high<\/strong> is the most recent all-time high prior to the correction.<\/li>
- The start<\/strong> is the first closing price at least 10% down from the previous high. While it could be argued that the correction really begins at the previous high, our analysis is primarily concerned with what happens once the correction has been confirmed.<\/li>
- The low<\/strong> is the lowest price during the correction.<\/li>
- The end<\/strong> is the final closing price crossing above the original correction start price. Note that price may cross above the correction starting price multiple times throughout the correction, but we\u2019re only interested in the final time it does so as it\u2019s the point where the market will not return to correction territory in this cycle. This is something we only know in hindsight, of course.<\/li>
- The new high<\/strong> is the first all-time high reached after the correction has begun.<\/li><\/ul>\n\n\n\n
Here\u2019s an example using the 2020 correction.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/2020Correction-1024x615.png\")
<\/figure>\n\n\n\nNote that the SPY quote data used for this article uses the\nCRSP methodology, so it\u2019s been adjusted for dividends. As a result, the prices will\nbe lower than the actual closing quotes for days prior to December 17, 2021.\nThe divergence will grow larger as the dates go further back.<\/p>\n\n\n\n
Our definition of a correction is partly intended to offer a\nconcrete way of measuring performance. Some may argue that a correction that ultimately\nexceeds 20% to be a bear market, but we\u2019re not going to split those hairs. We\u2019re\nalso not going to account for price level resets where a new correction could\ntheoretically begin before the current correction has achieved a new all-time\nhigh.<\/p>\n\n\n\n
Goals<\/h2>\n\n\n\n
Our goals here are to use data to help answer some of the frequently\nasked questions about past corrections, including:<\/p>\n\n\n\n
- How often do corrections happen?<\/li>
- How long does it take to enter a correction from\na high?<\/li>
- What can we expect once we enter a correction?<\/li>
- How does the market perform during a correction?<\/li>
- Is it worth trying to call a bottom?<\/li>
- How long does it take to recover from the\nbottom?<\/li>
- What happens after corrections?<\/li>
- What can we do with the data we have?<\/li>
- What happens if you invest at the start of a\nbull run?<\/li>
- How\ndo we know when a correction is coming?<\/li>
- How\ndo we know when a correction is easing?<\/li>
- What\nkind of returns can we expect from different correction milestones?<\/li>
- Is there an ideal strategy for correction\ninvesting?<\/li><\/ul>\n\n\n\n
While there are several important milestones over the course\nof a correction, it\u2019s important to remember that there are only two we\u2019ll know\nwe\u2019re at when they happen:<\/p>\n\n\n\n
- The start of the correction, when we\u2019re down 10%\nfrom the all-time high.<\/li>
- The end of the correction cycle, when we hit a\nnew all-time high.<\/li><\/ul>\n\n\n\n
All of the other events will only be identifiable well beyond\nthe point where we can do anything about them.<\/p>\n\n\n\n
How often do\ncorrections happen?<\/h2>\n\n\n\n
Based on our simple definition of a correction, a pessimist\nmight see the market in one of two ways: we\u2019re either waiting for the current correction\nto end or waiting for the next one to start. Since the SPY ETF only began trading\nin 1993, we have slightly under thirty years of data to analyze to see where we\nare more often. Over that period we\u2019ve had eleven corrections, which indicates\nan average of one every 2.7 years.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/InCorrections-1024x535.png\")
<\/figure>\n\n\n\nIn the graph above, the shaded areas represent the period\nwhere the market was in correction. The left edges represent the first day it\ntraded down 10% from the all-time high while the right edges are the final time\nit traded below 10%. Note that there is some significant variability in the corrections\nthat fit our definition, but we\u2019re not going to trim outliers. All analyses\nperformed here will include all data weighted equally.<\/p>\n\n\n\n
Here is a more detailed breakdown of the data for these\ncorrections.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/CorrectionDays-1024x365.png\")
<\/figure>\n\n\n\nHigh To High<\/strong> answers \u201cHow long does it take the\nmarket to regain a new high after the previous pre-correction high?\u201d<\/p>\n\n\n\n
In Correction<\/strong> answers \u201cAfter we enter correction\nterritory, how long does it take for the market to clear correction territory\nfor good?\u201d<\/p>\n\n\n\n
Next Correction<\/strong> answers \u201cOnce the market reaches its\nfirst post-correction all-time high, how long does it take for the market to reach\nthe next pre-correction all-time high?\u201d<\/p>\n\n\n\n
Note that the market was not in a correction when the ETF\nbegan trading in 1993 and had not yet exited the 2022 correction when this\narticle was written. As a result, the total number of days spent in correction\nterritory is likely to be less than the time spent between the all-time highs\nthat bookend correction cycles.<\/p>\n\n\n\n
How long does it\ntake to enter a correction from a high?<\/h2>\n\n\n\n
Bull markets, like all good things, must come to an end.\nWhile there may be many smaller pullbacks over the course of a bull market, we use\nthe 10% decline threshold to identify the start of a correction.<\/p>\n\n\n\n
Here\u2019s the data on how long it takes to go from an all-time\nhigh to correction territory.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/CorrectionEntry-1024x735.png\")
<\/figure>\n\n\n\nDays<\/strong> answers \u201cHow long does it take to enter\ncorrection territory from an all-time high?\u201d However, this specifically\nmeasures the distance of a correction from its most recent all-time high. There\ncan be many new highs between corrections, so it\u2019s not possible to know if the\nlatest all-time high will be the last one ahead of a new correction until the\n10% drop.<\/p>\n\n\n\n
Using the data from earlier, we know that the time from a post-correction\nall-time high to the next pre-correction all-time high has ranged from 45 to\n1,068 days and averages slightly over one year at 367.5.<\/p>\n\n\n\n
What can we expect\nonce we enter a correction?<\/h2>\n\n\n\n
Imagine you\u2019ve just heard the worst financial news in\nmonths: the market closed today and it\u2019s down more than 10% from all-time\nhighs. We\u2019re now in correction territory. What should we do?<\/p>\n\n\n\n
Should we expect a bounce? Should we go flat? Should we add\na hedge? Should we liquidate the hedge?<\/p>\n\n\n\n
Unfortunately, it\u2019s unpredictable. Just like the\ncircumstances that drive the market into a correction are tough to see coming,\nso are the near-term market responses that happen once we enter the correction.\nThese responses, whether related to financial sentiment, government\nintervention, geopolitical volatility, or whatever, that impact the duration\nand severity of the correction.<\/p>\n\n\n\n
Here\u2019s a look at the timeline data from the perspective of\nthe day the market has entered a correction.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/CorrectionStartDays-1024x392.png\")
<\/figure>\n\n\n\nLow Days<\/strong> answers \u201cHow long does it take a correction\nto bottom once it begins?\u201d<\/p>\n\n\n\n
Low Return<\/strong> answers \u201cHow much further does the market\nfall after the correction starts?\u201d The peak decline of the correction cycle\nfrom all-time highs is about 10% higher.<\/p>\n\n\n\n
End Days<\/strong> answers \u201cHow long does it take to exit a\ncorrection once it begins?\u201d<\/p>\n\n\n\n
Until Next High Days<\/strong> answers \u201cHow long does it take\nto get back to all-time highs after we\u2019ve entered a correction?\u201d<\/p>\n\n\n\n
Based on the data, around a third of corrections bottomed\nfor a day and the market immediately rebounded. Another third bottomed out\nwithin a few weeks. However, when the market didn\u2019t bottom within four weeks,\nit took anywhere from six months to nearly three years to finally find reach an\nultimate low. <\/p>\n\n\n\n
How does the market\nperform during a correction?<\/h2>\n\n\n\n
Corrections mean a lot to investors. There\u2019s something about\nreaching two digits of negative return that really grabs attention. However,\nthe good news is that the market generally responds well once the correction\nhits. Most of the time it recovers to all-time highs within six months.<\/p>\n\n\n\n
Here\u2019s a breakdown of the returns for various terms once a\ncorrection has begun.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/CorrectionStartReturns-1024x773.png\")
<\/figure>\n\n\n\nWhile the market has historically rebounded from corrections,\nthe strength and speed of the recovery vary. It\u2019s also important to note that\nthere\u2019s a speed bump around half the time where the market draws down between\nthe terms selected here, and it\u2019s almost always between the six-month to\none-year terms when it happens.<\/p>\n\n\n\n
Is it worth trying\nto call a bottom?<\/h2>\n\n\n\n
There is a ton of opportunity for massive returns if you\ninvest at the bottom. Unfortunately, there\u2019s no way of knowing you\u2019re at the\nbottom until the correction is over. However, all past corrections eventually\nreturned to all-time highs, so investing during a downturn\u2014bottom or not\u2014has historically\nyielded positive returns.<\/p>\n\n\n\n
But if you can manage to call the bottom, the returns are\nalmost always stellar.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/BottomReturns-1024x773.png\")
<\/figure>\n\n\n\nHow long does it\ntake to recover from the bottom?<\/h2>\n\n\n\n
By definition, any movement from the bottom will be\npositive. However, it requires a lot of upward movement to recover from some of\nthe deepest bottoms, especially if it took months to get all the way down\nthere. Here\u2019s how many days it took for the bottom to exit the correction and\nreach a new all-time high.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/BottomDays-1024x575.png\")
<\/figure>\n\n\n\nEnd Days<\/strong> answers \u201cHow long does it take to exit a\ncorrection once it bottoms?\u201d<\/p>\n\n\n\n
Next High Days<\/strong> answers \u201cHow long does it take to reach\nnew all-time highs once the market has hit a low?\u201d<\/p>\n\n\n\n
While the market usually hits fresh all-time highs within\nsix months of bottoming out, some of the corrections have been devastating and\ntaken much longer. The bottom reached in March of 2009, for example, was over 6%\nbelow the bottom hit in October of 1997. It took eighteen months to drop from its\nall-time high to this eventual low, and then well over three years to get back\nto new all-time highs.<\/p>\n\n\n\n
But it did happen. And it [hopefully] always will.<\/p>\n\n\n\n
What happens after corrections?<\/h2>\n\n\n\n
The periods between correction cycles, which we\u2019ll call bull\nruns, take up all the space between the first post-correction all-time high and\nthe last pre-correction all-time high. Note that we\u2019re making a distinction\nbetween bull runs and the larger bull market they\u2019re in. If a bull market is\nthe period between one correction\u2019s low and the last all-time high ahead of the\nnext correction, the bull runs we\u2019re focused on here only start at the first\npost-correction all-time high. This is important because we can actually recognize\nthat milestone when it happens, thus offering the ability to meaningfully act\non it.<\/p>\n\n\n\n
Here\u2019s what those periods look like.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/BullRuns-1024x413.png\")
<\/figure>\n\n\n\nReturn<\/strong> answers \u201cWhat is the total return for the bull\nrun?\u201d<\/p>\n\n\n\n
Annualized<\/strong> answers \u201cWhat is the total return for the\nbull run on an annual basis?\u201d<\/p>\n\n\n\n
Days<\/strong> answers \u201cHow long was the bull run?\u201d<\/p>\n\n\n\n
New Highs<\/strong> answers \u201cHow many new all-time highs were\nreached during the bull run?\u201d<\/p>\n\n\n\n
Days Per New High<\/strong> answers \u201cHow many days are between new\nbull run all-time highs on average?\u201d<\/p>\n\n\n\n
There\u2019s some great news here. When the market exits a\ncorrection cycle by reaching a new all-time high, it tends to continue to grow\nfor an average of well over a year. Unlike corrections that often bounce\nimmediately or within a few weeks, all bull runs in recent history lasted at\nleast six weeks.<\/p>\n\n\n\n
Unfortunately, the returns are based on the idea that you\nwould perfectly time the sale at all-time highs, which isn\u2019t feasible.<\/p>\n\n\n\n
What can we do with\nthe data we have?<\/h2>\n\n\n\n
While most correction cycle milestones are only identifiable\nin hindsight, there are two we know about when they happen: the start of a\ncorrection and the next all-time high. Obviously\u2014by definition\u2014we would see a\npositive return if we bought at the correction and sold at the next all-time\nhigh. But what happens if we reverse the process?<\/p>\n\n\n\n
Here\u2019s what the returns look like if you bought at the first\nall-time high after one correction and then sold as soon as the market entered\ncorrection territory the next time.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/BullRunToNextCorrection-1024x603.png\")
<\/figure>\n\n\n\nReturn<\/strong> answers \u201cWhat would the return be if you\nbought the new all-time high and then sold the next correction?\u201d<\/p>\n\n\n\n
Annualized<\/strong> answers \u201cWhat are the annualized returns\nfor this approach?\u201d<\/p>\n\n\n\n
While the returns aren\u2019t as good as a perfectly timed bull\nrun, they\u2019re usually pretty good. Plus, they have the added benefit of not\nactually requiring any special timing. You know both milestones have happened\nimmediately and can methodically trade them.<\/p>\n\n\n\n
What happens if you\ninvest at the start of a bull run?<\/h3>\n\n\n\n
But even if you don\u2019t plan to sell at the start of the next\ncorrection, historical returns have been pretty positive for investing at the\nstart of a bull run. All-time highs tend to be bullish signals for the market,\nso there are usually solid gains to follow.<\/p>\n\n\n\n
Here are the returns for various terms once the market has\nreached a new all-time high after a correction.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/BullRunReturns-1024x723.png\")
<\/figure>\n\n\n\nHow do we know when\na correction is coming?<\/h2>\n\n\n\n
While there are no guaranteed ways to identify where we are\nin a correction cycle, there are some interesting insights that come from\noption-centric data. Unfortunately, SPY options only began trading in 2005, so\nthere is relatively limited history. However, there is enough to notice a few\npatterns in some recent corrections.<\/p>\n\n\n\n
One of those insights comes from the implied volatility (IV)\nof SPY options. In its most simplified sense, IV is a good measure of how much\npremium investors are willing to pay for downside protection. As a result, IV\ngoes up when the market gets worried, and then settles back down when things\nseem safe again. SPY IV is very closely related to the Volatility Index (VIX,\naka the \u201cFear Index\u201d) and should track pretty closely.<\/p>\n\n\n\n
As expected, the charts below illustrate this phenomenon.\nThere is a clear inverse relationship between price and implied volatility.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/IVDuringCorrections-730x1024.png\")
<\/figure>\n\n\n\nUnsurprisingly, the market has consistently bought insurance\nagainst potential drops using SPY options. And since investors often try to be\nahead of the curve, the IV spikes generally precede the actual drops. Of course,\nsometimes a subset of investors get spooked and there\u2019s a minor jump in IV\nwithout an accompanying drop in the underlying. But when the broad market\nsentiment expects a drop, everyone piles on and IV can go through the roof. The\nlarger the IV spike, the larger the expected decline.<\/p>\n\n\n\n
The data used in these charts is the 30-day implied\nvolatility for SPY options. However, there are many other terms available ranging\nfrom 10-day to 1080-day. These terms are useful in comparison because they can\nhelp understand how far out the market is pricing risk. For example, if there\u2019s\nan important Fed meeting in 25 days, the 10-day and 20-day IVs will typically be\nmuch lower than the 30-day and beyond IVs because the longer-dated options are\nbeing employed for insurance.<\/p>\n\n\n\n
The volatility data used in this analysis is from our Historical and Implied Volatilities database<\/a> available through Nasdaq.<\/p>\n\n\n\n
How do we know when\na correction is easing?<\/h2>\n\n\n\n
While IV can be a good immediate-term gauge for entering a\ncorrection or approaching a drop, it\u2019s not necessarily useful for identifying\nwhen the low has been hit and the market is in recovery mode. Part of the\nreason for that is that it\u2019s unclear what levels IV will stabilize around. <\/p>\n\n\n\n
- In the two 2018 corrections, IV topped out around\n30%. But in 2020, it was around 80%.<\/li>
- When IV relaxed in 2018, it settled in the 8-12%\nrange both times. In 2020, it stayed above 15% long after the recovery was in\nprogress.<\/li><\/ul>\n\n\n\n
Fortunately, there is another measurement that has shown\nsome promise in identifying the latter stages of a correction: IV Rank. IV Rank\nmeasures the relative valuation of IV using recent history. It takes the past\nyear of IV measurements for a specific term, such as the 30-day IV used here,\nand indexes the value relative to the overall range. If the IV for the past\nyear has ranged from 20-40%, then a current IV of 35% would have an IV Rank of 75%\nsince it\u2019s 75% of the way from 20% to 40%.<\/p>\n\n\n\n
Historically, IV Rank has been used by option investors to determine\nwhen to buy or sell options. The argument is that when IV Rank is over some\narbitrary number, like 50%, then it\u2019s overvalued and should be sold with the\nexpectation that IV will revert to its longer-term mean. However, in our\nresearch we\u2019ve found that IV Rank has been a pretty good indicator of\ncorrection recovery.<\/p>\n\n\n\n
Here\u2019s how IV Rank has moved relative to underlying price\nduring the same corrections.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/IVRankDuringCorrections-728x1024.png\")
<\/figure>\n\n\n\nNotice how once IV Rank breaks down through 50% it tends to\nstay below it for the duration of the correction cycle. While the sample set is\nsmall, it seems to happen soon after the correction has bottomed out and long\nbefore it reaches new all-time highs. It may be one of the strongest indicators\nthat the worst of a correction is over.<\/p>\n\n\n\n
Here\u2019s what the returns look like from the first day IV Rank\nbreaks below 50% during a correction. Note that the data used only goes back to\n2010, so corrections begun before then are not included.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/IVRankBelowThreshold-1024x242.png\")
<\/figure>\n\n\n\nThe nature of these returns are based on the premise that\nthe market sentiment is improving, so insurance via options is being reduced. The\n50% threshold isn\u2019t really a magic number. It\u2019s just a nice round number that translated\nto the correction turning the corner to all-time highs. It also doesn\u2019t\nnecessarily mean that the current price is above or below the correction start\nprice.<\/p>\n\n\n\n
In addition to IV Rank, there are several other popular IV valuation metrics that may offer you insight as to the status of the market or individual stocks, such as IV Percentile and IV Rating. The IV valuation data used in this analysis is from our Quantcha Option Ratings database<\/a> available through Nasdaq. You may also be interested in our Quantcha Option Analytics database<\/a> for other data points, such as put\/call ratios, option-implied forward prices, and option breakevens.<\/p>\n\n\n\n
Is there an ideal\nstrategy for correction investing?<\/h2>\n\n\n\n
In addition to the correction starts and the new all-time\nhighs, the IV Rank thresholds are metrics that can be identified in real time.\nAs a result, it\u2019s feasible to develop an investment strategy that includes different\nthresholds for a disciplined approach.<\/p>\n\n\n\n
Here\u2019s what the returns for different identifiable milestones\nlook like relative to the next correction start. Additional IV Rank thresholds\nare included to illustrate additional options.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/03\/NextCorrectionReturns-1024x189.png\")
<\/figure>\n\n\n\nIn this chart, the returns for each milestone are measured from\nthe date they occur to the date of the next market correction. We use these\nspecific milestones because they are all observable the day they happen. However,\nthis means that each return has a different term length. In the chart they are\nordered from longest to shortest since the correction starts first, then the IV\nRank recedes, and finally a new all-time high marks the start of the next bull\nrun.<\/p>\n\n\n\n
Correction<\/strong> answers \u201cWhat was the return between the current\ncorrection\u2019s start to the start of the next correction?\u201d<\/p>\n\n\n\n
IV Rank 60<\/strong> answers \u201cWhat was the return between the\nfirst time IV Rank broke below 60 and the start of the next correction?\u201d<\/p>\n\n\n\n
IV Rank 50<\/strong> and 40<\/strong> answer the same as the\nabove, but with lower thresholds.<\/p>\n\n\n\n
Bull Run Start<\/strong> answers \u201cWhat was the return between\nthe first post-correction all-time high and the start of the next correction?\u201d\nThis data was covered earlier and is included for completeness.<\/p>\n\n\n\n
The good news is that there really doesn\u2019t need to be an\nideal strategy for investing during a correction. Since the market has\nhistorically always eventually returned to all-time highs, it\u2019s always been a\nmatter of time before the gains come. However, IV Rank does seem to be a strong\nindicator of when the worst of a correction has passed, which is generally the\nbest time to get in for a bargain.<\/p>\n\n\n\n
Key correction conclusions<\/h2>\n\n\n\n
This report highlights a lot of details around corrections\nand the nature of returns that can be expected at given milestones. Here are\nsome of the key conclusions we\u2019ve come to in the process of researching it.<\/p>\n\n\n\n
Time in the market appears superior to timing the market.<\/strong>\nEven with reliable option-centric data, it\u2019s difficult to tell when a\ncorrection is about to happen, and the risk of losing out on potential gains in\norder to avoid losses is harder than it looks.<\/p>\n\n\n\n
Long-term returns from the start of a correction tend to\nbe good at any point.<\/strong> While it doesn\u2019t seem to be possible to detect a\nbottom, metrics like IV Rank offer hints as to when the worst has passed.<\/p>\n\n\n\n
Using identifiable milestones for investment planning is an\neffective approach.<\/strong> Since it\u2019s impossible to determine when the last pre-correction\nall-time high or correction low have been hit, basing decisions on measurable events\nwithin the correction cycle seem to be the best path to consistent positive\nresults.<\/p>\n\n\n\n
Questions or feedback?<\/h2>\n\n\n\n
\n\nPlease reach out to us at hello@quantcha.com<\/a>.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
Markets drop. It happens. When your investments take a hit, your reaction can range from mild concern to full-blown panic. There\u2019s no universal way to manage a portfolio during a downturn, so you\u2019ll need to factor in the nature of the market, the nature of the downturn, and the nature of your portfolio goals when … Continue reading “What do we know about market corrections?”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":419,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages\/401"}],"collection":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/comments?post=401"}],"version-history":[{"count":4,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages\/401\/revisions"}],"predecessor-version":[{"id":429,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages\/401\/revisions\/429"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/media\/419"}],"wp:attachment":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/media?parent=401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
- The start<\/strong> is the first closing price at least 10% down from the previous high. While it could be argued that the correction really begins at the previous high, our analysis is primarily concerned with what happens once the correction has been confirmed.<\/li>