This is all hindsight by now, but any chartist would have saw that the markets were about to decline around that time in 1987.
I've posted a chart explaining why. The mood had turned bearish way before Black Monday. The market double topped in August, broke down in early September and came back to test the break down in early October. If I were around back then (I was a year old at the time), my system would have had me short in early October. I wouldn't have expected for the bottom to fall out like that, though. In fact, I probably would've expected some short-covering in the blue shaded area but had it not bounced, I would've stayed short....or I would have used any rally to sell more.
