Yesterday's crash had a surprise element similar to the "Blackswan" Panic 1987 & Covid 2020 scenario

+ Black Monday (19/10/1987):

The cause came from the application of the automatic trading system -> Making the speed and volume of transactions increase too high.

=> Creating a chain effect when many sell orders were activated at the same time => US stocks crashed 22% in 1 day (1 week before that, SP500 had adjusted more than 10%)

+ Covid Panic (Q3/2020):

Before being announced as a global representative on March 12, SP500 also had a "1-week pre-dump" with an amplitude of more than 12%.

=> At its peak, BTC crashed more than 40% in 1 day + SP500 total amplitude decreased >35%

+ Current market:

SP500 also reacted to decrease more than 10% before + BTC decreased >30% in 2 weeks + VIX index increased from 15 -> 65 (last time was Covid Panic 2020)

=> Confirm price action on 08/05 is a surprise Blackswan event

Based on price action from previous panics, the market will recover slowly in doubt

#insight#NFA #DYOR