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Dow Now

It Was 20 Years Ago Today…

Above you can see a chart of the Dow as it looks today. In the posting called Dow Then, you can see the chart of how the Dow looked before/during/after the 1987 crash (Courtesy of Helene Meisler’s blog).

On the 1987 chart point A was a consolidation about 14 months prior to the Crash. It lasted about 3 months. On the current chart, point A was approximately 14 months ago and it lasted approximately 3 months.

Point B is the breakout and rise from that consolidation. On both charts it lasted about 4 months before a correction set in.

Point C is a two month correction on the 1987 chart. Same as we had now, this past Februrary and March.

Point D was a two month persistent rise in 1987. Same as we had now.

The question is if last week’s peak is the equivalent of the peak on August 25, 1987. Most likely not, but it would be imprudent not to include it for you to review.