Is this week's market is indicative of a correction and if so at what point has the market corrected?

Question

I believe the correction point will come at 12600 on the DJIA because this is 10% down from 14000 if the market corrects this far.

Answer 1

No, this is not yet a correction; but it's headed that way. Most analysts seem to agree that there is still upside to the market for at least the rest of this year, so I don't think it's much to worry about.

Answer 2

It would certainly be nice if it stopped at 12600. But there are indications that it may not. The mortgage mess and the probability of consumers running out of throwaway money might lead to a much steeper drop, possibly 25-30% lasting a couple of years. There are those who think the upcoming election will prevent such a thing happening. Maybe and maybe not.

Answer 3

We are in a correction.

The market will have corrected when it is no longer going down - i.e. there will be a level below which it won't go. It will make several attempts at it and fail to take out the low. It will then turn back up. Nobody knows where or when it will be but that's how it will happen.

Answer 4

Just think of it this way, as the market drops and stock prices drop it gives you the chance to buy new securities at a better price. Just remember everything the market drops a significant amount it always goes back up higher than it previously was.

Answer 5

You can only answer that after the fact. The bottom will be obvious on the chart after the market has gone back up.

Question for you: what logical basis do you have for saying that 10% is significant?

Answer 6

How long is a length of string? The Dow is up over 10% in a few months so most of the hot money has been in and out and moved offshore. No one knows as, if we did, we would all be billionaires.

Answer 7

We are in for a major correction - both in the Housing Market and the Stock Market - fasten your seat belt.

Answer 8

now could be certainly no longer the time to purchase. you're able to look ahead to the marketplace to backside out. we are headed nicely under 10,000 returned. once you lose 14% in 2 weeks, it is not "marketplace correction."

Answer 9

Chris Laird from Australia has written a good article, and feels this is a 'Worldwide' correction.

http://www.kitco.com/ind/Laird/jul272007.html

However, I just checked the 'Value' of the U.S. dollar here, in the bottom right box:

http://www.kitco.com/

And it looks like the dollar has gained in value since the close of the market.
I'm going to stick my neck way out & say Japan, our good buddies, just propped up the value of the dollar by buying U. S. debt in a 'Large' quantity.
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Answer 10

1) Perhaps.
2) 5%