Stock Market Crash 2008: Dow Jones, S&P 500

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.

Category:

News & Politics

Tags:

• stock
• market
• crash
• 2008
• 1929
• 1987
• credit
• crunch
• selloff
• collapse
• recession
• bear
• trend
• forex
• commodities
• futures
• options

[OnlineTradingRebel]

I write this on March 26th 2009. It looks to be heading to around 8600 upside target. This is a bear market rally, so please don't think that anything has changed as yet. Market is bouncing off a long-term trendline support coming in from 1987 Crash lows. After around 8600, expect it to dither around in a trading range and then go crashing down to new lows. Yes, I think 6,000 will eventually be breached. But it has another 600 points to the upside as I write this today.

[pastout1]

today is august 7 2009. dow is at 9409 @ 1:15 pm est. Do you still anticipate a breach of 6000?

[brettrobson1984]

Do you think it coud break 6000 points feb/march based on current trends?

[TradingWithAnEDGE]

Patterns are made... and this is because the smart money continues to do the same thing. Something most traders will never figure out!

[breon31774]

Its only months latter we see hes right

The very next day was the single best day in history

And just as he said

It went down shortly after

This is a guy to watch

5* Favorite!!!

[patriotsundergod]

You are wrong sir, we are screwed!

[sparwood8]

Nov. 20th Dow closes at 7550 points. Enough said? We aren't even started yet, in this crash. 1987 was only a market correction. This is a recession.

[jeremyemilio]

That is one UGLY graph...

[marcusguernsey]

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!!!!!

[mrgud22]

I just want to say that fundamentals are much, much better than 1929 and 1987, so I wouldn't expect the same scenario.