Where Will The Market Debacle Stop?

Two weeks ago (Sept. 26) the Dow Jones Industrial Average hit a high of 11,168.10.  As of Tonight (Thurs. Oct 9) it closed at its low of 8579.19, down 23% in nine trading sessions.  That is a crash. The S&P 500 Dropped from a high of 1215.77 on the 26th to a low of 909.19 this afternoon, a drop in nine trading sessions of over 25%.  That is a crash.  See the charts below.

What does tomorrow bring?  The friday before a holiday weekend?  My guess is the real crash is going to happen tomorrow.  How low can it go.  See the following table and take your pick. The bottom line is though that those who have had the foresight to have some cash lying around should be putting it to work right now. This is likely to be the bottom. If not the bottom is likely to happen within the month.

Benchmark S&P 500 S&P % Loss DJIA Dow % Loss
High On 11 Oct 2007 1,576.09 0% 14,198.10 0%
50% From Oct 2002 Low to Oct 2007 High 1,172.36 -26% 10,697.80 -25%
30% Loss 1,103.26 -30% 9,938.67 -30%
61.8% From Oct 2002 Low to Oct 2007 High 1,077.08 -32% 9,871.72 -30%
50% From Dec 1994 Low to Oct 2007 High 1,009.49 -36% 8,918.37 -37%
40% Loss 945.65 -40% 8,518.86 -40%
Close Thurs, 9 Oct 2008 909.92 -42% 8,579.19 -40%
61.8% From Dec 1994 Low to Oct 2007 High 875.77 -44% 7,672.35 -46%
50% Loss 788.05 -50% 7,099.05 -50%
Low in October 2002 768.63 -51% 7,197.49 -49%
60% Loss 630.44 -60% 5,679.24 -60%
70% Loss 472.83 -70% 4,259.43 -70%
Post-Election 1994 Low 442.88 -72% 3,638.63 -74%

Dow Weekly as of 9 Oct 2008
Click me (Dow 30)!

SP 500 Weekly as of 9 Oct 2008
Click me (S&P 500)!

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