The table above reflects the levels where the stock market will "shut down" during times of high volatility, a/k/a Circuit Breakers. For example, upon a 7% daily decline in the S&P trading is halted for 15 minutes so coolers heads can prevail. That is a "Level 1 Threshold." Once the market reopens, if the index drops to -13% another 15 minute time out is called, like a second Xanax because the first one didn't work. The third strike is at the -20% level and then all bets are off for the rest of the day.
Knowing where these levels are presents an opportunity. Circuit breakers are one of those best laid plans that instead turn into self-fulling prophesies.
The closer the market comes to tapping the limits of sanity, as defined in the table above, the more likely the raved sellers will reach for that next threshold. Be aware of the levels and once the inevitable comes into view buy yourself a handful of puts.
Watch those mini crashes carefully, calculators in hand and give yourself a chance to get short in front of the robots.