After breaking into new 2011 highs a short three weeks ago, up 10 percent on the year, the S&P 500 has since lost its footing and retraced significantly, erasing yearly gains and potentially heading for a correction. The question is: where will the correction end? Timing a purchase in the middle of a correction is never an exact science. A Goldman Sachs analysis from Monday pegs the turnaround point near the 1850 to 1890 region on the S&P 500 based on historical trading patterns, saying it does not anticipate a 10 percent correction to exceed 1810. S&P 500 rallies and corrections since…
Review of S&P 500 Pullbacks And Corrections Since 2009
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.