ES is down 15 pts before the open YM is -100. The guys on CNBC say: this is just psychology.... We shall see.... Edit: Make it -18 ES and -125 YM at 9:20.
Markets are also seen remaining wary of historical patterns -- notably, 1987, 1997 and 2007. This behavioural pattern shows that stock markets don't like the years with a 7 in it. The 1987 crash, known as Black Monday, was the second largest one-day percentage decline, and the 1997 mini-crash was the third biggest points loss or 12th biggest percentage loss in its 110-year history. Will 2007 be the fourth biggest points loss? History also shows that the 1987 crash was the climactic culmination of a market decline that had begun five days before on October 14th. The DJIA fell 3.81% on Thursday, October 14, followed by another 4.60% drop on Friday October 15th, and then losing 22.6% on Black Monday. Also uncanny is that analysts were then very quick to point out at the time was that these crashes were a "correction" to the overheated markets, which were then trading at record highs.