Here's The Latest Chart Worrying Traders About A 1987-Style Stock Market Crash

Getty/Mike Powell

Since it was born in the doom and gloom of the GFC in March 2009, the current bull market for stocks in the US – and by extension Australia and elsewhere around the globe – has had to contend with naysayers and doom and gloom forecasters saying it is a rally built on sand.

But at more than 5 years old now it is a solid rally with gains in S&P terms around 180% from the low when it started.

Recently there has been the 1929-style crash chart which has been now widely dismissed but overnight US Investment Strategist Jim Paulsen from Wells Capital Management hit investors inboxes with a chart that shows some similarities to the market rally that lead to the 1987 stock market crash.


Many would argue there is an element of soothsaying in the 1929 and 1987 chart overlays but Paulsen wrote that even if history doesn’t repeat, “does it rhyme?”

On the assumption that history rhymes, he said, based on the above correlation of time frames between the 80’s bull market and the current one that:

we are now just 37 trading days from another important anniversary in financial history – 10/19/1987 when the S&P 500 Index suffered its biggest single day collapse ever!

37 days of trade left in this bull market if Paulsen is right is around May 29th (taking account of market holidays) – mark it in your calendars.

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