- Percent of stocks trading within 10% of their 200-day high (dark blue line)
- Percent of stocks trading between 10-20% of the 200-day high (red line)
- Percent of stocks trading between 20-30% of the 200-day high (light blue line)
- Percent of stocks trading further than 30% from the 200-day high (black line)
So where do we stand currently? From the charts below we can see that bucket 1 (the dark blue line) is starting to turn lower while bucket 2 (the red line) is turning higher. In other words, more and more stocks are moving into a corrective phase. The corrective phase has taken root primarily in Europe and least so in Asia. North America is somewhere in the middle. In Europe, the percent of stocks that are either in a correction or a bear market (buckets 2-4) represent 68% of the total, so we know that the selloff in Europe has been widespread. In North America and Asia the percent of stocks in a correction or a bear market is only 35%.