Stock Market Crashes, Precursors and Replicas

@article{Sornette1996StockMC,
  title={Stock Market Crashes, Precursors and Replicas},
  author={D. Sornette and A. Johansen and J. Bouchaud},
  journal={Journal De Physique I},
  year={1996},
  volume={6},
  pages={167-175}
}
  • D. Sornette, A. Johansen, J. Bouchaud
  • Published 1996
  • Economics, Physics
  • Journal De Physique I
  • We present an analysis of the time behavior of the S&P 500 (Standard and Poors) New York stock exchange index before and after the October 1987 market crash and identify precursory patterns as well as aftershock signatures and characteristic oscillations of relaxation. Combined, they all suggest a picture of a kind of dynamical critical point, with characteristic log-periodic signatures, similar to what has been found recently for earthquakes. These observations are confirmed on other smaller… CONTINUE READING
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