MARKET WATCH: THE WALL STREET JOURNAL


Scary 1929 market chart gains traction

Opinion: If market follows the same script, trouble lies directly
ahead
By Mark Hulbert, MarketWatch


CHAPEL HILL, N.C. (MarketWatch) — There are eerie parallels between
the stock market’s recent behavior and how it behaved right before the 1929
crash.


That, at least, is the conclusion reached by a frightening chart that has been making
the rounds on Wall Street. The chart superimposes the market’s recent
performance on top of a plot of its gyrations in 1928 and 1929.


The picture isn’t pretty. And it’s not as easy as you might think to wriggle out from
underneath the bearish significance of this chart.