November 11 and 12, 2008
The slump continued with the indices losing some two percent on Veterans Day and around five percent on Wednesday, the following day. Trading reflects, and maintains, the steady decline begun in September. It is revealing to compare the current situation with the price erosion of the previous, 2000 cycle.
The period of these two sequences is quite similar, from their respective tops, to a month ago. The first diagram shows the earlier cycle reversing itself, prices moving higher, and the next bull market starting their recovery.
The second diagram compares the same cycles, but compares their daily prices against each other. With each day is marked with its month, it shows that the parallels between these two cycles remain constant until this month. Note that the 2000 prices are starting to increase, while the current prices are continuing their decline. That is why the price action of October, marked by 10s on the diagram, are shown below the data points of September, marked by 9s. Moreover, the 11s, also below the earlier observations, continue the current trend of declining prices.
November 11 November 12
DJIA -1.99 percent DJIA -5.19 percent
NASDAQ -2.22 percent NASDAQ -5.17 percent
S&P500 -2.20 percent S&P500 -4.73 percent