As always one should read and acknowledge the DISCLAIMER. Flashback to Black Monday 1987 for some educational lessons which we may learn. Almost 30 years ago, when the global markets suffered heavy losses on what is now called Black Monday (19/10/1987) lets look at the technical stance of the US Benchmark SP500 ( main window) Gold ( middle window) and Greenback (bottom).
Daily chart in analysis here. It was sharp and decisive to say the least. The follow-through on the 15th ( see circled bar) was the completion/confirmation of a daily top which did not look as serious as one may have thought. Hindsight always wonderful !
This tells me that, change always starts in the shortest time frame. Therefore. I always remind myself to respect any completed technical pattern after seeing a follow-through as it was the case here.
This post is in no way to suggest that similar scenario may or may not unfold, but rather to act as an educational material only.
Chart is courtesy of StockCharts.com with thanks.
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