Prices plunged at the opening and never recovered. At the bell, the NASDAQ closed off -5.22 percent, recording its 35th drop ever. The other two indices fared little better, as the S&P500 lost -4.46 percent, its 34th worst day; the DJIA suffered the least damage, losing -3.68 percent, scoring its 49th largest loss.
With almost all of the deep losses coming during the last decline, from October 2007 to March 2009, todays slump implies the coming of a sharp reduction of future values.
These large, negative changes suggest caution, since their history is clear: they come when prices decline. Nor are they common as the market approaches a bottom. The record indicates that a thoughtful and careful approach is best in times like these.
Price projections for tomorrow favor recovery: in the past, the NASDAQ scored seven advances but declined four times. Both the DJIA and the S&P500 increased on six days and declined on five.
DJIA -3.68 percent
NASDAQ -5.22 percent
S&P500 -4.46 percent