(from the April 8th MoneyBeat column)
Art Cashin puts the critical range between 1837-1840. The fall to this level represents the leading edge of a correction similar to the one earlier this year, according to Asbury Research.
The firm looks at the “rate of change” in the S&P 500 – the percentage change between the most recent price and the price 21 days ago. With Monday’s slide, this rate of change “has now moved meaningfully into negative (bearish) territory,” the firm wrote in a note, “which indicates that the U.S. broad market index is beginning a pullback/correction.”