1987 is a "model" of how the INITIAL THRUST DOWN will "likely" proceed. In 1987, Thursday and Friday were down days....followed by a big gap lower on Monday and a "thrust" down on Tuesday. Then....the market bounced hard for 2 - 3 days....and then ROLLED OVER AGAIN at the end of October/beginning of November.
Keep in mind the intermediate term bounce in the market in 1987 will likely NOT occur here. We are dealing with VASTLY DIFFERENT MARKETS. In 1987, we were at the beggining of a SECULAR BULL MARKET that didn't end until 2000. Now....we are at the BEGINNING OF A SECULAR BEAR MARKET....that may not end for years.
But any secular bear market will have significant intermediate moves up within it.
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- 10/02/2008 Market Recap: Market Oversold
This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.
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