Traders will be looking for those answers when they get back to work on Monday, which coincidentally is the first trading day after the anniversary of the 1987 stock market crash known as ''Black Monday.'' The Dow Jones industrial average plunged 22.6 percent that day to mark the largest one-session percentage decline ever. The blue chip index that tracks America's 30 biggest companies will begin trading this Monday at the 8,852.22 level, a dizzying 37.5 percent from its record closing high set Oct. 9, 2007. Analysts remain mixed if the roller-coaster action in recent weeks is a sign of capitulation, a Wall Street term that indicates a sense of despair among investors that's a perquisite to a rebound. The last time Wall Street reached such a cathartic level was during the last bear market, when the Dow fell 37.8 percent from a close of 11,722.98 on Jan. 14, 2000 to 7,286.27 on Oct. 9, 2002. However, then investors didn't have to worry about a recession blocking a rebound.
That Sequoia stuff is good - for the bullish case. A few more widely-circulated doomsday presentations will lead to extreme pessimism and a bottom. Let's see VIX rocket to 100.