From the WSJ:
The S&P 500 has lost 22% of its value in 6 trading sessions.
BusinessWeek gives a nice synopsis of this crash like action. During the crash of 1987, we fell 29.57% in the worst nine-day period before bouncing 15% in two days…the bottom occurred on a Monday. The chart above doesn’t even show the Dow’s intra-day movement to 7884, but it is conceivable that we retest that low sometime next week; JP Morgan and Wells Fargo report earnings on Wednesday, which will certainly be catalyst (hopefully a good one).
One has to think that we’ve almost washed out all of the forced sellers, like the redemptions in Mutual Funds, liquidations of Hedge Funds, and the margin calls which we saw all week. (Please, look at a 5 day chart of Chesapeake Energy to fully grasp this….)
Aubrey K. McClendon, the billionaire chief executive of Chesapeake Energy Corp., has sold “substantially all” of his stock in the company over the past three days in order to meet margin loan calls, the company said Friday.
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