How Low Will Stocks Go?

How Low Will Stocks Go?

This year's Black Friday was marked not by buying, but by selling, as overseas markets plunged in overnight trading Friday, with Japan's Nikkei and Hong Kong's Hang Seng down over 2. 5%. The Spyder Trust (SPY) SPY , which tracks the S&P 500, opened down 1. 4%, which in turn triggered even more selling in the European markets, with Germany's Dax dropping 4. 1%. Typically in the U. S. the days before and after Thanksgiving have a low trading volume, which can amplify the price moves. Friday's volume in SPY was the highest of the month, and 60% above the 30-day average. The 2. 53% decline in the Dow Jones Industrial Average was only the 3rd worst Black Friday performance on record, falling behind only November 28, 1919 (down 3. 56%) and November 27, 1931 (down 2. 76%). For comparison, after the bear market bottom in 2009 from the 2007-08 financial crisis, the Dow dropped 1. 48% on November 27, 2009. The S&P 500 was down 2. 2%, a bit worse than the 2% decline in the Dow Jones Industrial Average, while the Dow Jones Utility Average was down 0. 8%. The selling was very heavy on Friday, with just