How Much Of A Pullback Ahead?

How much of a pullback can we expect? We look to our retracement tool to give us a sense of how much of a pullback we can expect.

A retracemen is drawn from a low to a high. In the chart above, we have drawn the line from both the December low and November low. At a minimum, we now can expect a 38% pullback to 1521.24 or 1501.70.

A more realistic number is a 50% pullback, which is either 1497.73 or 1471.40.

The S&P 500 peaked at 1593.37 so a 5% pullback would take us to 1513.68 which is between the two 38% pullbacks.

A 10% pullback would take us to 1434.03. This would take us slightly beyond the 61.8% retracement levels that are 1474.22 and 1441.23.