We are still waiting for the market to stop acting like 1987 prior to the crash.
In our recent post we pointed to the charts and timeline of market events. Today would be the black Monday when the market lost 20% in one day. But in 1987, on the preceding Friday the market lost 5% breaking well-below the 200-day moving average and the lower price channel. The good news is this did not happen last Friday.
The bad news is the market was not open last Friday.
Hmmm. Does that mean we will have a Black Tuesday?
Could be, but in 1987 they did not have the Plunge Protection Team working diligantly to keep the free-markets from working or all the circuit breakers built into the markets.
Here is the chart we posted last week to provide perspective on the 1987 event.
The market needs to bounce soon.