Today the market continued to decline rapidly due largely because of the impending war between Russia and Ukraine.
The Nasdaq dropped 2.6% and currently remains well below its 200 day moving average. The index has now registered declines in 5 straight days.
The S&P 500 dropped 1.8% today. It, too, currently sits well below its 200 day moving average having declined for 4 straight days.
In terms of major institutional selling days, the Nasdaq is at 7 days and the S&P 500 is at 6. Both of these day counts are quite high.
All of this resulted in the market's reclassification after the close to RED - Market in Correction.
As you know we have a high bar for reentering from a RED market. To get the market to GREEN and reenter we'll need a minimum of 4 trading days where the markets rally and don't undercut the lows established today. Once this rally has established, the final day must see indexes rise at least 1.25% on volume above the prior day.
We will now wait for our GREEN market.