Stock Market Update

Weekly Market Statistics

It looks like the NASDAQ remains in bear market territory while the others major markets are off their lows and down less than 20%, but still painfully down.

Corrections are regular parts of the market. I see them as great opportunities to accelerate your dollar cost average plans if you are below your target asset allocation and are on a DCA program to get to your target asset allocation. If you are like me and take profits as the market goes up to keep a fairly constant asset allocation, then corrections are great opportunities to get some shares back at cheaper levels to regain your target asset allocation.

Correction Statistics for 03/29/08

S&P 500 Chart
(Using Intraday prices):
Last Market High 10/11/07 at 1,576.09
Last Market low 03/17/08 at 1,256.98
Current S&P500 Price 1,315.22
Decline in Pts 260.87
Decline in % 16.6%
Max Decline 20.2%

This means the correction from intraday high to intraday low is 20.2% and we are currently 16.6% off the peak.

The decline from the high to the low on a closing basis is 18.6%
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DJIA Chart
(Using Intraday prices):
Last Market High 10/11/07 at 14,279.96
Last Market Low 01/22/08 at 11,508.74
Current DJIA Price 12,216.40
Decline in Pts 2063.56
Decline in % 14.5%
Max Decline 19.4%

This means the correction from high to low has been 19.4% and we are currently 14.5% off the peak.

The decline off the high on a closing basis has been 17.1%

NASDAQ Chart
(Using Intraday prices):
Last Market High 10/31/07 at 2,861.51
Last Market Low 03/17/08 at 2,155.42
Current NASDAQ Price 2,261.18
Decline in Pts 600.33
Decline in % 21.0%
Max Decline 24.7%

This means the correction from high to low has been 24.7% and we are currently 21.0% off the peak.

The decline off the high on a closing basis has been 24.1%

Congratulations to anyone who "market timed" from equities to Gold (GLD on this graph) last October!

For more of my recent articles, see:

• Friday, March 28, 2008: ECRI Calls it "A Recession of Choice"
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• Tuesday, March 25, 2008: March Consumer Confidence Falls to Five Year Low
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• Monday, March 24, 2008: Major Newspapers Publish Articles About Possible Depression

BTW, if anyone wants to see what my monthly newsletter sentiment update looks like, then check out this PDF file: "Take Profits & Sell Sentiment Indicators from The Market Top." The page of my newsletter is from last year with the markets near an all time high at 1540.

The S&P500 was at 1540 when I said take profits in my monthly newsletter shortly after we had all five of the indicators say BUY on a correction.

Unlike on October 19, 2007, I am NOT saying to sell or take profits now!!!

Subscribe to my newsletter NOW to see what I recommend today!
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