S&P 500: 5% Pullbacks Tracked

Check out this graph from Birinyi Associates. They’ve tracked 6, 5% pullbacks in the last 2 years.

“What is perhaps more encouraging is the fact that 5% declines do not usually result in a further 10% decline, and a bear market is even less likely. An initial 5% decline, such as the one beginning on 2/18/11, only results in a correction (10% decline) 33% of the time, and in only 11 of 106 instances has a 5% decline turned out to be a bull market top.”

So according to these guys were in for a bull market. Lets note that for the record and stay tuned.

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This entry was posted on March 21, 2011 at March 21, 2011 and is filed under U.S Market. You can follow any responses to this entry through the RSS 2.0 feed.