Setting long-term channels provides clear distinction between major market shifts.
Likely correction %'s from ATH's:
- 25% minimum expected decline
- 40% is the most likely correction
- 55% major correction
- Total market reset would be 90%
The blue channel reflects the top-end growth breaking out in 2018, followed by another breakout above the dark pink channel in 2019.
Bright pink channel defines the market exuberance from unfettered stimulus & "quantitative easing" that is unsustainable.
Expectation for a reset of 40% from ATH to 9,800 is likely, while a correction to mid-channel would be about 25% from top.
There are multiple instances where a 40% correction occurred:
- mid-1987
- early 2000's (dot.com bubble)
- Early 2020 w/ global p-demic/'rona
While there were larger ones:
- 2008 housing crisis resulted in a 55% correction
- "Great Depression" realized a ~90% market decline.
Likely correction %'s from ATH's:
- 25% minimum expected decline
- 40% is the most likely correction
- 55% major correction
- Total market reset would be 90%
The blue channel reflects the top-end growth breaking out in 2018, followed by another breakout above the dark pink channel in 2019.
Bright pink channel defines the market exuberance from unfettered stimulus & "quantitative easing" that is unsustainable.
Expectation for a reset of 40% from ATH to 9,800 is likely, while a correction to mid-channel would be about 25% from top.
There are multiple instances where a 40% correction occurred:
- mid-1987
- early 2000's (dot.com bubble)
- Early 2020 w/ global p-demic/'rona
While there were larger ones:
- 2008 housing crisis resulted in a 55% correction
- "Great Depression" realized a ~90% market decline.
