Is This 1929 Or 1987--Or Are We In For A Bounce In The Stock Market?

Is this 1929 or 1987 or are we in for a bounce in the stock market?

I actually had this question posed to me after Friday’s action. No one has a crystal ball but for quite a long time I have been out of this choppy grinding market. I recently had a post about Apple before it imploded. I would assume students that followed the rules I taught them have avoided this selloff. There is now tremendous complacency and  questions are being asked why did the selloff occur on Friday…Hmmm.

Could it be China...only the world's second largest stock market?

Could it be Greece…( soon Spain…Italy…Ireland..Portugal)?

Could it be complacency? 

Could it be greed…or I forgot what I was told..We are in for a Super Cycle. I can stand a 20% selloff. Well,I am so glad they know it can only be a 20% selloff.

The facts are very clear:

The stock market has been down on successively higher volume

It has shown an inability to rally much

And the biggest Fact:

A stock market that refuses to rally from a deeply oversold condition is a dangerous market.

I do not know what Monday or any day will bring…anything can happen and one needs a complete trading plan.

Personally, I am using this time to study past trades that I took and those that I missed in order to better myself. This is not a market I want to trade right now.