33,075.
That's the 10% line on the Dow off the January high of 36,750 and while we don't care about that line much at PSW, as we follow the much more accurate 5% Rule™ – it is something the Financial Media tends to latch on to so we're going to get our bounce here and see how strong that is. The line we care about on the Dow is 31,680, which is the strong bounce line off the 20% correction at 28,800, which is 20% off 36,000 because we consider the whole 750-point move above it to be unworthy of being counted.
- Dow 36,000 to 28,800 would be a 7,200-point drop with 1,440 bounces to 30,240 (weak) and 31,680 (strong).
- S&P 4,800 is 20% above 4,000 and that makes it an 800-point drop with 160-point bounces so 4,160 (weak) and 4,320 (strong).
- Nasdaq is using 13,500 as the base and we bottomed yesterday at 13,103. 14,100 is the weak bounce and 14,700 is strong.
- Russell 1,600, would be about an 800-point drop with 160-point bounces to 1,780 (weak) and 1,960 (strong).
4,320 on the S&P 500 turned red since yesterday and all that matters today is whether or not we can take it back. The S&P is at 4,231 this morning – so about 100 points to go…
