>Implications for the Stock Market and the Economy
>
>If this analysis is correct, the U.S. stock market, and by extension
>most stock indexes worldwide, is rounding the cusp of a trend change
>of at least Supercycle degree. The DJIA has completed five waves up
>that will lead to a three-step partial retracement of corresponding
>degree. This means that the decline will not be a moderate setback
>such as the market has undergone from time to time since 1932. It
>will be at least large enough to complete the downside portion of a
>full cycle beginning in 1932, which is a large setback. It may even
>be completing a cycle that began in 1784, in which case the bear
>market will be the largest since that of the 1700s. In other words,
>the stock market is embarking upon its biggest bear market assuredly
>since that of 1929-1932 and possibly since that of 1720-1784. If any
>such bear market occurs, then as we saw in Figure 1, the economy
>will experience a depression.
Golly. But who can refute the Wave Principle?
Doug