September 22, 2008
It is tempting to think that, looking at todays losses in light of the substantial gains posted last Friday and Thursday, there is no need for concern. After all todays closes are higher, or slightly smaller, than on Thursday. However, as suggested in Fridays analysis, comparing the current pattern with the one that existed, and played out, before the major 1987 decline, may lead to a different, more worrisome conclusion.
Then, after two strong gains followed a huge decline, the fourth day closed with losses in the minus four percent range.
Now, we see the same pattern occurring, as these indices dropped more than three percent today –that is, the fourth day of the current series. Such a replay may not be forthcoming; nevertheless, there are no other experiences, since 1950 that are as similar, in frequency and size of the past few days, as the 1987 disaster.
DJIA -3.27 percent
NASDAQ
-4.17 percent
S&P500 -3.83 percent
This entry was posted on Monday, September 22nd, 2008 at 12 042008000000Mon, 22 Sep 2008 16:40:35 +0000 and is filed under Market Report. You can follow any responses to this entry through the RSS 2.0 feed.
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