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The is down over 22% (peak-to-trough).
Sadly, the most important declines in equities have traditionally occurred because of recessions, and the percentages are excessive that we’re going to be coming into one quickly. The bear markets of 2020 and 2008 each occurred throughout recessions and noticed declines of 34% and 56%, respectively.
There are a number of technical indicators to research when making an attempt to find out a backside in a long-term market decline. A standard one is the , known as the concern index.
Usually, the VIX will rise to considerably elevated ranges at market bottoms, a mirrored image of traders speeding to promote in mass. That is known as capitulation, and we aren’t there but.
Beneath is a chart of the S&P 500 within the higher panel and the VIX (10-day shifting common) within the decrease panel. Discover how the VIX is presently rising however is nowhere near the elevated ranges seen on the final two bear market bottoms.
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