A Predata research note sent October 2 warned that digital interest in the possibility of a stock market crash had steadily risen in late September and early October. The level of activity, though not in itself predictive, was anomalous, a reflection it seemed of underlying concern about a market downturn.
Eight days later, the Dow Jones Industrial Average began a sudden slide. Over just two days, the index fell more than 5 percent. The tailspin leveled off, but Predata’s signal shows concerns may be lingering. The signal, which fell before jumping upward again when the selloff began, remains heightened.
The signal activity does not necessarily suggest the stock market will fall further. But it does show the possibility remains top of mind for online observers.