Spiraldates.com Crash Watch

Posted: under Stocks.

Current Market Compared To Past Crashes

I think it may be too soon after the May 22nd top for a major crash like the 1929 and 1987 crashes that took the market down 20% in a day or two. But you never know – this chart compares these past markets with the current (S&P 500) taking the high close in each market prior to each crash as a y-value of 1.0 and scaling other closing prices accordingly. You can see that 1929 and 1987 each lost about 35% in as many trading days, for an average decline of around 1%/day for two solid months. But about half of each of the 1929 and 1987 declines came in the last day or two prior to the crash bottom.

Update: Here is an article that gives a crash warning and explains the market dynamics that are at work and why a crash is much more likely now. The first part of the article is free, but the second part requires enrollment/payment.

Comments (5) Jun 20 2013