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29 Years Later, The Market Looks Nothing Like It Did October 19, 1987

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29 Years Later, The Market Looks Nothing Like It Did October 19, 1987
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October 19 marks the 29th anniversary of the infamous "Black Monday" stock market crash of 1987.

On that day, the Dow Jones Industrial Average (INDEX: DJI)
fell 508 points, or 22 percent. This remains the largest percentage drop on record.

Charts Can Be Deceiving

With the stock market currently nearing record levels, many analysts have predicted a similar crash, saying that the 2016 S&P 500 (INDEX: .INX) chart pattern bears some similarities to that of 1987, according to Market Watch.

Related Link: 10 Reasons The Stock Market Rebounded 2 Mornings After Black Monday

On the optimistic side, Ryan Detrick, senior market strategist at LPL Financial Holdings Inc (NASDAQ: LPLA) acknowledged that while the charts look similar, there are also several differences including the factors leading up to what caused the 1987 crash.

More pessimistic, market technical analyst Murray Gunn of HSBC Holdings plc (ADR) (NYSE: HSBC)
warned that the 2,116–1,991 range by the S&P 500 or the 17.992–17,063 mark by the Dow could trigger a big selloff.

Key Differences Between 1987 And 2016

Before Black Monday, the S&P 500 was up nearly 40 percent before the crash happened, much different than the year-to-date results seen in 2016.

"The bottom line is no two years are ever the same and to suggest they are is uninformed," said Detrick, according to Market Watch.

While a pullback could be likely, don't expect anything like what was seen almost three decades ago.

Year-to-date, the SPDR S&P 500 ETF Trust (NYSE: SPY) is up 4.75 percent.

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Posted-In: 1987 Crash Black Monday market crash Stock Market CrashEducation Media General Best of Benzinga

 

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