Today’s chart porn comes to us via Bob Bronson.
Here’s a comparison of 3 prior market crashes: 1930, 1962, 1987 and today. (Note that there is no guarantee that this will be a crash, or if it is it will be the same as those others):
Source: Bronson Capital Markets
We are getting to a point where markets are oversold, and due to
bounce. But understand what odds we are facing here: A deep recession
likely awaits us, and with it, earnings compression, and lower — often
considerably lower — stock prices.
We will hear a lot of noise about Fed action, stimulus plans, etc.
— every reason why you should jump back in here — but all that
intervention will accomplish is delay the inevitable washout.
UPDATE: January 23, 2008 4:15pm
Wow, that was a helluva bounce.
The rumors of NYS helping to arrange a capital bail out of the monolines didn’t hurt.
And, it can keep going — perhaps over the next few weeks — to SPX 1,400 or so . . .