Make no mistake — the market is still crashing
Stock markets continue to get whipsawed.
Stocks plunged on Monday and Tuesday, bounced back on Wednesday, burbled along on Thursday, and then got slammed on Friday after the jobs report.
All the major US indices closed down about 3% last week.
People who are invested in the stock market might not want to hear this, but we could be in the midst of a stock market crash.
Generally, when people think about the tech and credit bubbles in the stock market, they tend to visualize a single crazy stock plunge that just keeps going and going in one direction: down.
When stock market bubbles come to a head, however, they tend make wild swings. In other words, they don't just suddenly burst — it's more of a wild up-and-down process.
In a January note to clients, UBS strategist Julian Emanuel looked into stock market action during the previous two major market peaks to illustrate this important observation.
For what it's worth, this is what the stock market has looked like over the past three weeks.
Given the recent volatility, one can't help wondering whether the stock market is crashing.