The Brains Trust - 2015, page-9898

Warning!! The XJO thread has had a Fukashima style nuclear melt down. Humans should not go there. You might think as a mod I should take control......but the environment there has become too toxic and my hazmat suit is still at the dry cleaners. The best I can do now is to organize an orderly evacuation to the XSO thread and hope like hell that there is no cross contamination.......

Pisces made a comment last night on the DT thread that added some perspective. This might feel like a crash but in 1987 the DJIA dropped 22% in one day. Last night the DJIA finished down 3.5%. One big difference between now and back then was that back then the DJIA had gone intergalactic in the year leading up to the crash. This year the DJIA has tracked sideways with a reasonably modest gain the year before. But this time around we have had a couple of other indices that have gone bunta 87 style most notable the SHCOMP......but let us not also forget the DAX. Germany has enjoyed a perfect storm. Their economy has been kick ass but their shared currency has been weighed down by the likes of Greece. In this environment they too have gone interstellar.

But what goes up must come down and the ones that rose the most have crashed while the others have corrected. Looking through the charts below most have returned to their long term trend lines as of last night. The XJO has a leeeeetle bit further to drop so we might see another fall of 100 points this morning followed by a recovery. I have not included the SHCOMP below because it has no defined channel and makes no sense anyway so I have included its first cousin the Hang Seng.

Maybe there is a bigger fall coming down the track or maybe we will just be weak for a while a la 2011 but whatever happens I reckon that we are just about due for a bounce off the bottom of all these channels.