Not Done Yet

Corrections typically last around 30 days.  Although the market topped almost two months ago, I am not convinced that we have seen the lows. 

The decline in May was ultimately just under two percent and hardly a real gut-check.  The “real” stomach churning correction has run through April and is only a few weeks old.

Looking at the chart from this prism, the correction seems to be shaping up in a more typical pattern:

1. Steep Drop #1 (Done)
2. Tepid Recovery Rally (In Progress)
3. Steep Drop #2 (Next?)
4. High-Volume Reversal (When the correction is really done!)