If the Dow fell 22% from 1987, it would be more than 5,700 points

Maria Bastone | AFP | Getty Images

The photo taken on October 19, 1987 shows a trader holding his head on the floor of the New York Stock Exchange when the Dow Jones lost more than 500 points, the largest decline in the modern era, while the sale of panic swept Wall Street.

Friday marked the 31st^st "Black Monday" anniversary, by far the worst day of all time on the US stock market.

Source: FactSet

Black Monday took place under the combined effect of tight market dominance, a collapse of the US dollar and volatile stock market volatility throughout the summer of 1987, even as economic conditions its height. Since then, other accidents have occurred, including the 2010 Flash crash.

Today, very few market experts are expecting a collapse as the US economy, as well as corporate profits, is growing at a steady pace. Safeguards and regulations have also been put in place to protect against such sharp declines.

But JC Parets, founder of All Star Charts, believes that a stock market crash in the United States is quite possible, the stock dragging in October.

"The ingredients of a stock market crash are absolutely starting to appear," Parets said in an article published Thursday on the blog. There is "a very limited potential for buying securities other than for counter-current trading, but an unlimited downside potential".

"People underestimate the power of leverage and forced selling," he added. "Now, does it have to be a crash? No. We can trade a range for a while."

The S & P 500 and Dow indices respectively lost 4.2% and 3.4% in October. If the S & P 500 closed down for the month, the winning streak would lose six months. The Dow is about to post its first monthly loss in four months.

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