Dow just dropped below 20,000...

[brooklynite]

[mcar]

1. Crikey

[uponit7771]

2. We'll see, we could flat line at 20 for months. Lets hope that's the case

[intrepidity]

3. It keeps bouncing off it

That's a strong psychological barrier, when it finally falls through it for real, then watch out below.

[Wounded Bear]

4. Been hovering around 20k all morning...nt

[unblock]

5. the dow was 19,827.25 at the end of january 20, 2017, the day donnie took office.

remarkable how close we are to that point.

i think the market is over-reacting, though it's clear we've just started a very severe contraction.

but it's still remarkable that virtually all the stock market gains during donnie's presidency are effectively wiped out.

[malaise]

6. Could get there while he's spewing some more shit

in a few minutes

[unblock]

7. You called it, we're now below that point.

[ProfessorGAC]

8. Begs The Question

Did the economic fundamentals ever actually support the continued growth for 38 months, or was it wishful thinking based on " business man" nonsense?

[unblock]

9. Financial fundamentals certainly supported the stock market going up

Up as much as it was, probably not, as it was goosed by a number of factors, but the up trend was justified as companies were getting more profit.

The change in corporate tax law alone was huge for valuations of profitable companies (albeit not so much the big global ones who were successfully evading taxes anyway)

But yeah, it was long overdue for a correction anyway. But to erase 3 years of gains is staggering.

[ProfessorGAC]

10. I Get What You're Saying

But profitability wasn't rising across the board at the same % as the major indices, hence my question.
We disagree some on whether it was wasn't a 3 + year "irrational exuberance" party on Wall Street.

[unblock]

11. I'll call it one part irrational exuberance,

one part goosing corporate after-tax profits, and one part legitimate economic growth.

But we certainly agree the markets were overvalued.

[ProfessorGAC]

13. I'll Buy That

So really we're agreeing on all but tiny differences in proportion!

[MoonlitKnight]

12. Trading halted

S&P 500 is exactly at its support level. Either it bounces back up when trading resumes or next support level is around 2,000.