Sentiment Speaks - What The Charts Say About A Possible 90% Drop In The Stock Market

Summary

• The Dow had an incredible run over the past 100 years.
• Biggest sell-off in American history ahead?
• Market may be closing in on its final leg.

The Dow Had An Incredible Run Over The Past 100 Years

The Dow Jones Industrial Average has made an incredible run since lows that in 2009 during the last financial crises that struck the global economies. After hitting a peak of 14,198 on October 1st of 2007, the Dow fell some 54% to a low of 6469 on February 28th of 2009. Since that low and into the highs that were struck most recently the Dow is up more than 20,000 points or over 300% as it approaches 27,000.

Even more impressive is the run that the Dow had made over the much more extended period of time since the depths of the Great Depression. At the lows of the Depression in July of 1932, the Dow traded at of just 40 after peaking at 386 on Sept 1st of 1929. This drop of 346 points off of the peak in 1929 and into the lows of 1932 represented a drop of close to 90% in the value of the Dow. Of course, that low of 40 and subsequent run into the recent 27,000 high represents a gain of more than 67,000%. Looking a more recent significant bottom if we take the low that was struck in after the 1987 crash at 1616 into the most recent highs of 27,000 we have a gain of over 1,500%.

So after such an incredible run from these major historical bottoms, the question we now ask is how much further can this run continue and are we really in store for the biggest sell-off in American history?

Biggest Sell-Off In American History Ahead?

In an interview last week with John Catsimatidis Stephen Moore, President Trump's former pick for Federal Reserve Board, was speaking about the economy, the stock market and the policies that some of the

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.