What Mr. Markov Had To Say About The Nasdaq

When trading started this morning (Jan. 10), the Nasdaq was off sharply and had fallen 10% from its November peak - prompting pundits to declare that it was in a full-blown correction.

Not so fast, perhaps. When you look at the Markov regime change chart from last Friday (Jan. 7), you can see that the red signal (which when strong has led to a decline in the index) started to turn lower and the blue signal (which typically represents the Nasdaq moving higher) began to spike off its lows.

At one point today, the Nasdaq was off more than 2%. Where did it finish? It rallied back and finished up 0.05%.