Buckle up for a wild Monday – Stark Market Futures…? Crash or No-Crash…?

Shave your shelves…!
Buckle up for a wild Monday.
Dow Jones Industrial Average futures dived as much as 250 points Sunday evening following Friday’s 666 point drubbing, according to Bloomberg data. Futures on stock indices for Japan, Australia and Hong Kong also came under pressure.
Fed chair Janet Yellen.
“Well, I don’t want to say too high — but I do want to say high,” Yellen said in a CBS interview when asked about stock valuations. “Price-earnings ratios are near the high end of their historical ranges.”
Why the DJ cannot crash…
For a crash to occur, it requires large numbers of people in the market all selling at once.
At Christmas to February and August, there are just too many people sunning themselves in Florida with their famiiies to create a large enough crowd to stampede for the exit.
As it stands, the DJ MIGHT seriously drop, but then recover about 50% over the next few weeks if it is a “normal” crash, one leading to a recession or recover 30% if it precedes a serious Depression.
However, if there is a sharp correction over the next week, it will mark out the start of a DOUBLE TOP formation. If this occurs, the market will go seriously south about 60 to 90 days later.
In May, everyone is back from holiday and it is a prime time for a crash. THere is an old saying in the market,
“Sell in May
And Go Away
Buy again
Come Derby Day”
In short, a bad stumble, maybe next week, but if it does occur, expect an all out meltdown at the end of APril/start of May with the Dow down about 6,000 to 7,000 point or worse in a week.

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