Stock Prices 1509 to date | Video | Enlarge Chart |
The Elliott Wave structure is certainly interesting as well, what jumps out of the chart is the fact that we had a fifth wave extension in terms of the entire advance since 1784. What is even more interesting is the fact that the move from 1932 also sported a fifth wave extension. There is a very strong guideline in the wave principle that states that fifth wave extensions are typically followed by crashes. If one wants to search for examples commodities are a great place to start. The reason why commodities have dramatic crashes is because they follow a fifth wave extension. The guideline suggests that we can expect the decline to make it to the wave two of the fifth wave extension which would be below 1,000 on the DJIA. The fact that the 324 year cycle correction is due at this current point in time certainly supports this conclusion. Here is an example of a crash following a fifth wave extension [...]" More HERE + HERE