Echoes of "Black Monday" - 22.10.2012

Last Friday was a special day for many market participants: precisely 25 years ago, on October 19th, there was a famous market crash, figured in history as "Black Monday." Within a day, the U.S. stock index - Dow Jones fell by 22.6% that was the biggest drop in its history. The event influenced the entire World, not only the USA. It is curious that there was no important news or events, preceding the catastrophe and simply there were no visible reasons for the tank. Taking into account a rampant "enthusiasm" of the World CB’s, seen recently, there is no doubt that history will be repeated in the upcoming years. It is obvious that the markets could not help but fall on such a remarkable day like that: according to Friday results, stock indices lost over 1,5%, fixing the worst session in 4 last moths. Europe declined by 0,5% on average. Among the downfall reasons, the US quarterly reports and a lack of any decisions regarding Greece and Spain can be noted. In the morning session the main appetite for risk indicators - EUR/USD and S&P 500 futures are growing within 0,3% each.

S&P500 Futures, 4-Hourws chart