Answer= Greater than 2 years and Cascading Parabolas
Question= If you research all major stock market corrections what similarities do you see.
1.Time greater than 2 years-
After an in depth research project looking at all the major corrections in all stock markets that I could get data on, I found a startling similarity which does not bode well for our current correction. In large corrections of about 40% or more, none lasted less than 2 years. The market Psychology of this could be argued that it is hard for the perception of value in a bubble by a large populace to change any faster than the mentioned time period. Regardless of the reason our current correction which definitely fit the criteria of >40% is less than two years old and therefore I argue, not completed.
2. Cascading Parabolas-
It was also interesting to note that they all fell in a series of what I am calling Cascading Parabolas. Meaning that the market reaches a series of slower ,often rounded tops that roll over into precipitouse falls; and then sharp rise to start the proceess over again. However each successive top and bottom is lower than the previouse one.
We have a minimum of 2-4 months left of correction with a maximum of several years (if we dicount the Japanese crash). By overlaying the current S&P chart with the Nasdaq bubble chart one is immediately struck by the similarities. And it says we have either one or two cascading parabolas to go.
In plain English I am say we will not only test the S&P 666 bottom, but may even hit as low as 500. I don't wish this and am not happy with it but it is how I see it. Best Wishes in your investments.