u/Exciting_Progress535

I have an account with VEQT for the long term, and ZMMK for near-mid term spending if markets are down.

I know that if we are at or near all time highs it is safe to draw from VEQT and replenish my ZMMK funds as needed.

My question is the opposite, how do I know markets are sufficiently down to NOT sell VEQT and instead draw from ZMMK?

What do people use a gauge? Percentage of ATH? Rolling 12 month average? Other?

TIA!

EDIT: I’m trying to understand how folks manage their cash wedge during the drawdown phase of FI to limit sequence of returns risk. Most advice I see is keep 3-5 years worth of expenses ‘safe’ to draw from during market downturns.