After today’s big sell-off and subsequent reversal, I took a quick look at the Nasdaq bubble’s top in 2000 to see if I could find a similar day. Indeed, April 4 2000 showed a similarly illiquid market and trading day, as the Nazzy sold off more than 15% but reversed course and ended the day down much less.
Here is the S&P with today as the last data point:
And the Nazzy with April 4, 2000 as the last data point:
And here’s a look at where the Nasdq Composite was a year later:
I’m not necessarily calling for a crash– they key point to drive home is how illiquid and momo-driven/positive feedback this market environment is.