Slow Bleed vs. Violent Pullback This latest correction has been unusually drawn out, taking 51 trading days to reach the 10% decline -- the longest stretch among all 24 historical pullbacks.Historically, faster corrections (20 days or less) tend to produce stronger short-term rebounds, averaging a 3.1% gain over the next two weeks, with 92% of instances positive. Slower corrections, like the current one, see more muted short-term bounces, averaging a 1.3% gain with 60% positivity.nasdaq returns
nasdaq returns
The real sweet spot comes three to six months after a correction signal. Six months post-correction, the IXIC has averaged a 16% gain, with 78% of returns positive. When the index moved higher over that period, the average return was over 23%. Notably, in 18 of the 23 corrections since 1990, the IXIC never fell into bear market territory (-20%) before reaching a new all-time high. Slow Bleed vs. Violent Pullback This latest correction has been unusually drawn out, taking 51 trading days to reach the 10% decline -- the longest stretch among all 24 historical pullbacks.Historically, faster corrections (20 days or less) tend to produce stronger short-term rebounds, averaging a 3.1% gain over the next two weeks, with 92% of instances positive. Slower corrections, like the current one, see more muted short-term bounces, averaging a 1.3% gain with 60% positivity.
Slow Bleed vs. Violent Pullback This latest correction has been unusually drawn out, taking 51 trading days to reach the 10% decline -- the longest stretch among all 24 historical pullbacks.Historically, faster corrections (20 days or less) tend to produce stronger short-term rebounds, averaging a 3.1% gain over the next two weeks, with 92% of instances positive. Slower corrections, like the current one, see more muted short-term bounces, averaging a 1.3% gain with 60% positivity.