Bespoke Investment Group this morning writes of the spooky parallel to the aftermath of the 1987 crash.
Today’s first half-hour rise in the S&P 500 of 4% “is one of the strongest opening half hours for the index since the days following the 1987 crash.”
If history is any guide, say the folks at B.I.G., the market will slacken the next two hours, with the bulls coming back toward the close. From 3pm, Eastern to 4pm, the index has average a 1.66% gain on the 11 days since 1986 when the index was up more than 3% at 10 am Eastern.
Sure enough, the S&P has backed off from its initial climb, but is still up 42 points at 1,152.44.