Black Monday Stock Market Crash Returns to Haunt 2014
By DAVID ZEILER,
Chart watchers have noticed an eerie pattern - the bull market of 1982, which ended in the Black Monday stock market crashof 1987, looks way too much like the current bull market.
The stock market crash on Black Monday - Oct. 19, 1987 - was the worst one-day fall in history. The Dow Jones Industrial Average plunged 508 points - a 22.6% drop, while the Standard & Poor's 500 index lost 58 points for a loss of 20.4%.
Such a loss today would slice over 3,200 points off the Dow and about 365 points from the S&P 500.
And while no one can predict the markets for certain, the chart lines for the two bull markets have given many market analysts pause.
"The bull market that started in March 2009 is now up 169% through Friday. That's nearly step for step with the rally that began in 1982," said Money Morning Chief Investment Strategist Keith Fitz-Gerald.
The reason people are getting worried now is that the Black Monday stock market crash happened 1,311 trading days after the start of that bull market. The current bull market will reach that milestone approximately one month from now.
But Fitz-Gerald isn't quite ready to hit the panic button.
