Friday, June 1, 2012

Current 9.8% Pullback Is Third Largest Since March 2009

A little more than two hours into today’s trading session, the S&P 500 index appears to have stabilized. Using this morning’s low print of 1282.94, the maximum peak-to-trough loss in the SPX is now 139.44 points – a 9.8% decline from the April 2nd high of 1422.38.

The table below summarizes what I consider to be all the significant pullbacks since stocks bottomed in early March 2009. Note that the current pullback is the third largest in terms of magnitude as well as peak-to-trough duration, which stands at 41 days as of today.

For those who may be interested in a graphical overview of the same data, A Look at the Pullbacks of the 2009-2012 Bull Market should help to put the current pullback into better perspective.

For those who are wondering just how low the SPX might fall if stocks were to replicate the 21.6% decline from 2011 or the 17.1% pullback from 2010, a comparable decline in percentage terms would put the SPX at 1115 and 1178, respectively.

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[source(s): Yahoo]

Disclosure(s): none

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