Financial analyst Clive P. Maund asserts that we are now witnessing a “full on market crash” and that the Dow could see drops of up to a thousand points on a daily basis.
The Dow Jones lost 6% last week, tumbling more than 1,000 points, the worst fall since 2008, but according to technical analyst Maund, that is only the beginning. With fringe investors only just realizing the delusion of establishment financial media claims that the collapse was just a temporary “correction,” the rush to the exit will now become a stampede.
“When a market tips into a crash on a Friday, what typically happens is that the thousands or even millions of investors who believed the mainstream media and didn’t see it coming spend the weekend “stewing” over their investments – and many of them decide to bail out come Monday,” writes Maund.
“Thus we may see a massive down day tomorrow, possibly the worst of the crash phase, and it would not be that surprising to see the Dow Jones Industrials drop by 800 – 1000 points in one day, perhaps even more. Remember that the Dow Jones Industrials “only” dropped 3% on Friday, which is no big deal by the standards of past crashes,” he adds.
Maund predicts several days of high volume selling, noting that the market is currently in “full blown panic mode,” before a more measured decline confirms the emergence of a bear market downtrend. A self-perpetuating “Mexican wave” of losses will continue to spread globally for a few days, writes Maund.
Meanwhile, this morning’s continued collapse in Asia has sent the “fear index,” which monitors volatility in S & P stocks, exploding to its highest level since 2011.
Business Insider’s Henry Blodget says that stocks need to “drop of 40%-50% from the recent high” merely to “get back to historically average levels of valuation and performance.”
Even as investors resort to panic selling, some sectors of the establishment financial media are still clinging on to the delusion that we’re in a bull market.
CNBC is encouraging people to pour more money into the stock market, claiming that the collapse is merely a “dull year,” while Bloomberg is calling it a mere “correction”.
When this kind of blind faith begins to take hold, you know the bottom is about to drop out.
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