the waves say...

[Doug Henwood]

My nutty gurus at the Elliott Wave Theorist 
<http://www.elliottwave.com> say that the strong move upwards in U.S. 
stocks is over, and the exciting third wave of the bear market is 
about to begin. In Elliottworld, major trend moves break down into 
five waves, up, down, up, down, up. The first upwave is when it all 
gets started; it can be strong, but it's usually met with skepticism. 
The third wave is usually the strongest, and when the "point of 
recognition" comes - a broad recognition of the major trend. And the 
fifth wave is the decadent one - the time when the trend is old news. 
In the third wave of a bear market, you see massive anxiety - 
insolvencies, panics, a time when finance savagely hammers the real 
world (and vice versa). We'll see...

Doug