Stock market Crash of 2008: The Dow Jones and S&P 500 have made a major bottom on October 10th and should rally strongly for several weeks before the main bear market trend resumes and the stock markets crash once more. In the 1929 and 1987 stock market crashes, a 50% decline in stocks was achieved and this should happen in the crash of 2008 too.
Asoka Selvarajah is a former investment banking trade strategist with major Wall Street firms such as Merrill Lynch and Bear Stearns.
He covers trading in commodity, stock, stock index, futures, option and forex currency trading from a technical analysis perspective. From day trading to the longer investment time-frame, we look at financial markets from the view of the speculative trader.
XAVIER
Comments
surely, there are a lot of other factors other then annivers. that would indicate a bottom. for instance, what do you think the vix was in oct 02? do you think it was in the 80/90 level as it is today. the volitility is incredible, the debt and inflation is incredible. why not talk about the overall factors in the markets? how about how the US halted trading on the s+p futures and how the dow futures also hit a maximum of 550.markets down 40 %.you said it, a incredible event!!!!!
I just want to say that fundamentals are much, much better than 1929 and 1987, so I wouldn’t expect the same scenario.
Great explanation of the technical aspect. Too bad it suggests more downward pressure.
