Stock Market Meltdown

Jason Rogers

Senior member
2,768 92
Who can resist hyped headlines. Was reading CNBC yesterday and the article about Marc Faber calling for a "market meltdown" with a 20% decline in the stock market caught my attention. But I started thinking about it some more today and decided to measure exactly where a 20% decline in the Dow would leave us. I measured a 20% decline from the October 5 peak of 13,665, and the decline would end up around 10,932 level. Here's a look at the chart:


Technically speaking, the chart kind of makes sense when you take a look at the big picture. The 20% decline is right at the 2000 tech bubble top (resistance becomes support) and the congestion zone from August-October 2011.

We're already down 7.9% from he peak, so what's another 12%. Should also note that the chart is the US30 (FXCM CFD) which tracks the DJIA.

Anyone think we'll see this type of decline?
 
 
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