October 19, 1987
From an Elliott Wave perspective, the 1987 crash was really just a massive Wave 2 Drop.
After the completion of 5 waves going up — a wave 2 drops all the way down between the prior wave ‘iv’ and wave ‘ii’ –effectively retracing the majority of the rally.
But follows next is a wave 3 that regains all of that and much more.
Dow Jones Chart of 1987 Crash
S&P500 Daily Chart of 1987 Crash
In Larger context, the 1987 Wave 2 “Crash” Made room for Wave 3 Up
I’m not sure exactly what this is a chart of since the 2007 highs were higher than the 2000 high – which I don’t recall is the case for the S&P — but it’s close enough to illustrate that 1987 was a wave 2 drop that made room for much more massive wave 3 rally in the 1990s — the dotcom “bubble.”
In 1987, It Took Just Under 2 Months From the High to Crash
If you look at the Long Term S&P Charts, May 2010 was also a Wave 2 Drop
The Flash Crash of 2010 Happened Just 2 Weeks from the Top