A good table from Citi’s Tobias Levkovitch on what markets typically do after big declines.
With markets off sharply, investors are scrambling to get a sense of what to do now. Figure 1 illustrates that big sell-offs do not necessarily generate that cataclysmic crescendo of capitulation that everyone seems to want. Indeed, 3% and 4% type sell-offs do not yield big short-term recoveries. Moreover, it can be argued that sentiment has not gotten dire enough if the Market Vane data is at all instructive (see Figure 2).
And here’s the full historical table: