Flashback to Black Monday 19/10/1987

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.




All the information and analysis provided on this website is general in nature and for educational purposes only and does not constitute financial advice. No content in any way implies a recommendation to buy, sell, hold or short sell any financial instrument, nor is it financial advice.

Investing and trading in financial markets carries considerable risk, and should always be done in consultation with a licensed financial adviser taking your personal circumstances, financial situation, objectives and needs into consideration.

Links to other websites are inserted for convenience only and do not constitute endorsement of any of the material on those sites, or any associated organisation, product or service. Kazim Agaoglu is not responsible for the content of any site owned by a third party that may be linked to this website and such links are provided as a courtesy with no judgment or warranty being made concerning the suitability, accuracy or otherwise of the content on any such site.

Kazim Agaoglu disclaims any undertakings, warranties or guarantees, express or implied and shall not be liable for any loss or damage whatsoever arising out of in connection with the use of or reliance upon any of the information on this website. The user accepts sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.


Comments are closed.