1987 Vs. 2018
Chris Ciovacco | Oct 22, 2018 02:27PM ET
The 1987 stock market crash occurred on Monday, October 19. The week before was marked by high fear and heavy selling, with the S&P 500 shedding 9.12% between Monday, October 12, and Friday, October 16, 1987.
Over the past five sessions in 2018 the S&P 500 gained 0.02%.
h2 1987: KEY SUPPORT/h2On Friday, October 16, 1987, the S&P 500 was putting pressure on a key support level that was formed during a recent multi-month consolidation period.
Unlike the pre-Black-Monday close, the close on Friday, October 19, 2018 was well above a key area of possible support.
Why is the chart above relevant? Because in 1987, the market was in somewhat of a “make or break” posture before the 1987 crash. The present day market has numerous forms of possible support below price as outlined in detail on October 15 . Therefore, the 2018 market has secondary forms of possible support above and below the key area of possible support (see chart below).
The opening segment of this week’s CCM stock market video takes the 1987 vs. 2018 comparison to another level of factual detail. The video also covers a key signal that has only occurred three times since 1934, comparisons to the 2000/2007 peaks, and reasons to keep an open mind about the stock market forming a bottom in the next 1-2 weeks.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.