That’s a great question right now as many folks still remain quite nervous. The Volatility Index ($VIX), for example, gained more than 10% today, despite a minimal decline in the S&P 500. It’s a signal that the stock market likely won’t handle bad news very well. Next week, we have the September nonfarm payrolls. And earnings season is set to kick off in just a couple weeks, when the banks begin reporting. Could we see an earnings warning or layoffs from a big name or two? We don’t know, but if we do see bad news, it’s quite possible we see another leg lower in October. But could it crash? Well, first we’d have to define “crash.” Over the past 74 years, the S&P 500 has seen a drop of 9% or more in a calendar month just 17 times. That’s 1 monthly drop of 9% or more every 4…
