The Nasdaq index is trading to a new session low of 13125.30.00. That is getting closer to the January 24th intraday swing low at 13094.65 (and low for 2022).
A move below that level have traders targeting the May 2021 swing low of 13002.54. The current price is down around 19% from its all-time intraday high reached on November 22.
Looking at the price action during the correction since the start of the pandemic in 2020, the biggest correction came from the February 2020 high to the March 19 low. That correction took the price of the NASDAQ index down -32.04%. Other corrections on the way higher were much more modest with the largest from high to low less than 13%. That is until the current move lower.
Where would the market price have too go for the NASDAQ index if it had a similar decline to the start of the pandemic (i.e. -32%)?
The price would need to go all the way down to 11,006 area to equate to a 32% decline from the November high. With the current price at 13140, that still 2134 points. Ouch.