Right Side Trading senior instructor Wally Olopade was strikingly bearish on Benzinga's Premarket Prep show Friday morning, outlining how the market in recent months has mirrored conditions of two previous market crashes.
"I see from the big picture similar patterns of happened in 2008 and 2001," Olopade said. "From 2009 to 2015 the market was bullish and rallying. But notice what happened in 2015: we had the choppiest market we had in years. It was the same thing that happened in 2007 coming into 2008."
Olopade pointed to a key event that he thinks foretell a crash: a rally in a rocky year that sets a resistance for the overall market.
"We saw a dip in August and a pullback in October," Olopade said. "The fact that we could not get a higher high than the October pullback was all the information you needed to tell you that we are looking at [something similar] to 2008."
Listen to the full interview with Wally below at around the 1:00 mark and tune in to PreMarket Prep every morning from 8-9:30 a.m. EST for more exclusive interviews and analysis of the morning market.
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