Studying 1998 correction using S&P 500. The correction started July 20, 1998 at 1190.58, ended on Oct. 8th, at 923.32, the drop was 22.4%. The correction lasted 80 calendar days. The theme associated with the correction was Russian financial crisis and investors' flight to safety. The correction was preceded by 2 years of bull market gain of 89% without a more than 10% correction. The market rose from 626.65 on July 24, 1996 to 1184.1 on July 20, 1998 on closing basis. After the correction, the market rose 29% in less than 2 months with 10 DMA as trend line.
Take a look at bull market from March 2009 to April 2010, in 13.5 months, S&P gained 80% from 667 on March 9, 2009 to 1217 on April 23, 2010 without more than 10% correction. The theme with this correction was European debt crisis and investors' flight to safety. So far, this correction looks like 1998 one.
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