S&P500 CRASH OF 1987 VS. TODAY'S 2017 MARKET

Today (October 19th, 2017) is the 30th anniversary of Black Monday when the DJIA plunged more than 20%.  so naturally people are looking for a sign that we are there again.  Attention has been drawn to the similarity of the S&P 500 stock price rise and 1987.  What they don't knte is the on the Friday before Black Monday was a dark Friday.  If you carefully look at the figure,* you will see a sizable drop in the S&P 500 before the biggie.  This we haven't seen.  In fact, the S&P 500 was already on a general downtrend for at least a month before the biggie.  The peak was hit in July.

Even if we do have a crash, we should remember that both the DJIA and the S&P500 were up around 3% for the year, not great but certainly not bad.  somehow that doesn't get mentioned.

While the S&P 500 has been hitting new highs lately, it is creeping up and not jumping up (not obvious from the figure).

One interesting thing going on right now is not only are American companies earnings very good, but there is an increasing global economy that should be good for U.S. multinational companies.  While I don't believe that market will go straight up (today's drop doesn't surprise me), I stick to my forecast for the year that the indices will creep to new all time highs  during the year.

* https://www.cnbc.com/2017/10/18/sam-stovall-2017-chart-of-the-stock-market-looks-eerily-similar-to-87.html