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There are again chart comparisons out there with the 1987 crash.

I admit I was first impressed. But I always second check and will never take anything for granted.

So I have reconstructed the charts. Unfortunately I can't overlay them, so just open each one of them in a new window and compare them.

The first is the chart going up to 1987.

This is the one from today.

It looks pretty similar at first sight. But if we look at the percentage advance, the DOW in 1986/87 made an advance of 50%, while the DOW today made only 20%.

Now, if we compare the time period, we can see that the DOW 1987 chart only goes back one year, while the DOW 2007 chart goes back more than 2 years.

So it means that the DOW 1987 made an advance of 50% in just one year, while the DOW 2007 chart made an advance of 20% in 2+ years.

And lastly, it looks as if the DOW wants to challenge its recent pre-correction highs. 

Conclusion: That's not the fodder for a crash... (and always do your own research)

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