Comparing the current top (below, circled in red) with the 1929 top (above) clearly shows just how bad things can actually get. If we are to experience a prolonged meltdown, it appears the indexes have the potential to fall a lot farther than anyone is even imagining.
Update: I added the Nasdaq Composite chart at the very top as [...]
The last 2 weeks saw the indexes challenge 5 year trendlines as established from the lows of 2002. It is interesting that the action of the last few months looks very similar to the action during the 2000-2002 Bear Market. Actually, as the Nasdaq is still well beneath its all-time highs, it has been in a [...]
From the Wall Street Journal, January 1st, 1930.
And below, the Daily Journal, October 25, 1929.
To see the above image large enough to actually read it, go HERE.
With all the talk of financials having bottomed (what about the other 80% of the S&P?), I think it is prudent to continue examining how market tops look. There has also been many mentions that this correction is like 1990, so lets examine the S&P 500’s 1990 top.
Unfortunately volume data is not provided, which makes it [...]
This chart of the 1996 Nasdaq correction looks very similar to previous corrections.ÂÂ
From its intraday high in May to its intraday low in July, the market moved down ~20%.
Judging from reader comments, I need an operational definition of “leg down.” While I’ve not settled on one yet, I’m thinking that any period where the market [...]
Broker A (formerly known as The Fly) stated that veterans were feeling that the current correction felt similar to that of 1990-1991.
The chart shows the typical pattern for a correction: Sharp down moves followed by short consolidations. One aspect which should be noted are the capitulation days which are marked by big moves on large [...]
Market “crashes” are a popular subject for consideration during any period of general market weakness. History has shown, however, that markets in a correction do not typically experience an extreme downside “crash” similar to what was witnessed in 1987. Rather, the correction unfolds as a series of downside moves which increase in volume and reverse after a capitulation or flush-out. Between this [...]
