With another "black monday" (19 October) looming where is the market headed for the rest of the week? The probability of "black monday" repeating? 50/50 - no one knows and every expert that says its different this time got it wrong last time as well. In 2000/2001 the "experts" were all bullish and everything was rocketing forward according to them - relality a 3 year recession hit the US.
Sure nothing might happen but also something might happens..... Just a little off topic discusssion cause we can...
Interesting point CPS, although I am not sure if we will see a collapse on a large scale..... It may well start off the correction though as the Dow now looks up at 10,000 and seems to be deceiding if it needs a rest before trying to break through. The Dow is showing massive neg divergance on the RSI and retraced back from the 10,000 mark on Monday where it reached a high of 9978 before retreating. Maybe Q3 earnings will push it straight through, a nice correction now would give the rally more sustainability going into Q4.
Who knows about the swan returning...but the psychology on the market, especially after the major and fast bull run we had in the last 6 months could be a factor. Everyone could sit on the side and wait to see and then again everyone could decide to take profit (sell) and the panic to sell might set in and thus the swan. Ultimately who knows, just worth remembering that certain dates do play into markets. Could just pass like a bad Friday 13th movie but the sub-conscious thought still exists.