10 Pct Limit

The S&P500 index, the most widely followed index in the world (in terms of benchmarks) has now fallen exactly 10% from its record high. Major markets such as S&P500, EURUSD, XAUUSD, oil etc are widely scrutinized when their drawdowns reach high profile figures such as 10%,15% and 20%. At these points, algos and automated buy programs are alerted and even triggered. Similar action when these markets reach high profile moving averages such as 55, 100 and 200.  In today's case, today's SPX 10% decline coincides with the 55-DMA. Note in the drawdown charts below, what happened when SPX drawdown reached the 10% level. The most likely scenario (according to multi-year cycle averages), indices will have a positive April before resuming fresh downside ahead. 

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