All Time High (and reversal) For DJIA

Everybody seems to talk about the crash of ’87, as if it suddenly appeared out of nowhere, October 19, 1987.

Digging deeper, the crash started months earlier, at the market peak on August 25th.

One may consider today, Monday, August 26th, the 37th anniversary of that top; when by chance, we’re at another all-time high.

By now, most of us are tired of The Gong Show style prognostications:

‘Crash this’ and ‘crash that’, ‘the dollar’s going to collapse’ and there’s that! 🙂

At this point, none of those things have happened … yet.

In fact, the ‘collapse’ may actually be of a different sort this time around; posed by Uneducated Economist, link here (time stamp: 2:04).

Real & Separated

We may indeed get an ’87 or ’07, type of collapse, eventually.

Or, it may be that sectors wipe-out individually.

However, as UE points out (above, link), the ‘crash’ this time is hidden. It’s the separation of wealth from the ever more have-nots, to the haves, and have-more.

The (Biggest) Bubble

As the Dow Jones is making an historic high, possibly the biggest bubble of all time, the A.I. bubble, led by NVDA, and the SOX Index (SOXX, tracking ETF), peaked out on July 11th (not advice, not a recommendation)

When we last left the SOXX, with this update, link here, it had this to say (emphasis added):

“If we just saw a test of resistance (solid black line), then there’s only one (or a variation of one) right answer at the next session.”

“That is, SOXX, price action (by the close) to be either net sideways or down (not advice, not a recommendation).”

Well, ladies and gentlemen, that’s exactly what happened.

The SOXX, posted a new daily low, closing down -5.86-pts., or -2.51%.

Nvidia is scheduled to release earnings this Wednesday.

Let’s see what happens next.

Stay Tuned

Charts by StockCharts

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