SteadyTapeQuantitative Market Research

Volume Climax & Correction Levels

SPY at 2.9% from ATH, VIX at 21.5

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High-volume capitulation days + correction-tier breach events with forward returns.

SPY Drawdown
2.9%
VIX
21.5
Volume Ratio
1.6x
Climax Events
15
1M Median (Corr)
+1.9%

When to run this study

Run during or after a sharp market decline to quantify the historical edge. Most useful when SPY has dropped 5-15% from its ATH and/or a single high-volume down day has occurred. Answers: is the selling exhausted? What do forward returns look like from here? Where is VIX vs historical correction analogs?

Historical results

Forward Returns from Correction Thresholds

LevelEvents1W Win%1W Mean1W Med1M Win%1M Mean1M Med3M Win%3M Mean3M Med6M Win%6M Mean6M Med
-5%121560.500.30691.202.307033.80756.107.40
-10%77550.400.10620.701.70652.704.70694.605.70
-15%59540.400.20641.101.60643.503.60665.406.10
-20%39540.400.50641.701.20692.405.50745.707.30