S&P index got close to its 20% down level but bounced
All The major US stock indices are taking a breather after falling sharply this week. The major indices are higher with the NASDAQ index leading the way with a 2.2% rise.
A snapshot of the market 15 minutes into the open is showing:
Dow industrial average up 251 points or 0.80% the 31984.36 S&P index up 53.5 points or 1.36% at 3983.63 NASDAQ
NASDAQ
The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since assumed the majority of major trades that had been executed by the over-the-counter (OTC) system of trading.What Makes Up the NASDAQ?In particular, the exchange also features the NASDAQ Composite, which includes almost all stocks listed on the NASDAQ stock market. Along with the Dow Jones Industrial Average (DIJA) and S&P 500 Index, this is one of the three most-followed stock market indices in the United States.Overall, the NASDAQ stock market has three different market tiers. This includes the Capital Market, or an equity market for companies that have relatively small levels of market capitalization. The listing requirements for small cap companies are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalization.Additionally, the Global Market is made up of stocks that represent the Nasdaq Global Market. The Global Market consists of 1,450 stocks that meet the exchange’s financial and liquidity requirements, and corporate governance standards.Finally, the Global Select Market is a market capitalization-weighted index made up of 1,200 US-based and international stocks that represent the Global Select Market Composite.
The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since assumed the majority of major trades that had been executed by the over-the-counter (OTC) system of trading.What Makes Up the NASDAQ?In particular, the exchange also features the NASDAQ Composite, which includes almost all stocks listed on the NASDAQ stock market. Along with the Dow Jones Industrial Average (DIJA) and S&P 500 Index, this is one of the three most-followed stock market indices in the United States.Overall, the NASDAQ stock market has three different market tiers. This includes the Capital Market, or an equity market for companies that have relatively small levels of market capitalization. The listing requirements for small cap companies are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalization.Additionally, the Global Market is made up of stocks that represent the Nasdaq Global Market. The Global Market consists of 1,450 stocks that meet the exchange’s financial and liquidity requirements, and corporate governance standards.Finally, the Global Select Market is a market capitalization-weighted index made up of 1,200 US-based and international stocks that represent the Global Select Market Composite.
Read this Term Russell 2000 is up 41 points or 2.36% at 1780.43 Yesterday, the S&P index got within a few points of a 20% fall from the all-time high. Markets a move 20% from highs are considered in a bear market
Bear Market
A bear market is defined as a financial market in which prices are falling or are expected to decline. This designation is most commonly used in the stock market, though can also be applied to other markets as well, including real estate, foreign exchange, commodities, etc.A bear market differs from periodic declines in assets by virtue of its duration, not frequency. For example, a bear market will typically see extended periods during which large numbers of stock share prices are falling over months, or possibly even years.Bear Markets ExplainedLike any asset, movements are driven by speculation and by extension levels of optimism in markets. In the case of bear markets, investor confidence is weak and a driver of assets in a downward direction. Of course, there are multiple factors at work with any sustained or directional push of asset prices. This influences speculation, psychological effects, and other external stimuli. Oftentimes, bear markets do not have a clear start or end point, nor do they use any specific metrics in their analysis or identification. Rather, the case of the stock market can help define a bear market. For example, if stock prices fall by 20%, typically after a rise of 20% and before a second 20% rise, then it can be surmised that a bear market is in effect.Moreover, bear markets are notoriously difficult to forecast, though there are also several different factors that exist that can help usher a bear market as well. Bear markets commonly take place when the economy is shrinking or during periods of weakness, turmoil, or uncertainty.This is supported by weak gross domestic product (GDP) readings and a sustained rise in unemployment or declines in corporate profits. Investor confidence is also a notable determinant, which tends to have a sustained fall during a bear market period.
A bear market is defined as a financial market in which prices are falling or are expected to decline. This designation is most commonly used in the stock market, though can also be applied to other markets as well, including real estate, foreign exchange, commodities, etc.A bear market differs from periodic declines in assets by virtue of its duration, not frequency. For example, a bear market will typically see extended periods during which large numbers of stock share prices are falling over months, or possibly even years.Bear Markets ExplainedLike any asset, movements are driven by speculation and by extension levels of optimism in markets. In the case of bear markets, investor confidence is weak and a driver of assets in a downward direction. Of course, there are multiple factors at work with any sustained or directional push of asset prices. This influences speculation, psychological effects, and other external stimuli. Oftentimes, bear markets do not have a clear start or end point, nor do they use any specific metrics in their analysis or identification. Rather, the case of the stock market can help define a bear market. For example, if stock prices fall by 20%, typically after a rise of 20% and before a second 20% rise, then it can be surmised that a bear market is in effect.Moreover, bear markets are notoriously difficult to forecast, though there are also several different factors that exist that can help usher a bear market as well. Bear markets commonly take place when the economy is shrinking or during periods of weakness, turmoil, or uncertainty.This is supported by weak gross domestic product (GDP) readings and a sustained rise in unemployment or declines in corporate profits. Investor confidence is also a notable determinant, which tends to have a sustained fall during a bear market period.
Read this Term
The inability to reach the- 20% level is given buyers some hope that the correction is over.
Looking at the daily chart of the S&P, the fall did also fall short of the 38.2% retracement of the move up from the post pandemic low. That retracement level comes in at 3815.20. Holding above that level is also a positive from a longer term prospective.
PS. the move lower post pandemic, saw the S&P plunge 35.41% to the March 2020 low before starting the bull run to the January 2022 all time high. The correction off that high this year at around 20% is well short of that plunge.
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