If, indeed, the Elliott Wave Primary Wave 2 peak has just been reached in the Grand Supercycle bear market and Primary Wave 3 down, the "Apocalypse Wave", is next, what does this mean? Well, just consider the following chart presented in Robert Prechter's Elliott Wave Theorist January investment letter projecting the stock market's course over the next year or so:
That is not a misprint. The Elliott Wave Principle suggests a 90%+ drop in stock prices, to Dow 1000 or lower, lies ahead.
Since that post the stock market has dramatically reversed.
This week, in the wake of the 6/26 lunar eclipse, the DJIA broke below the psychologically important 10,000 mark and, along with the Dow Transports, broke to new lows in the current wave down. According to the Elliott Wave Principle and Dow Theory, this confirms that mass mood is in the context of Primary wave 3 down in the Grand Supercycle bear market. In other words, the "Apocalypse Wave" is almost certainly now underway.
Here are some charts that show where we stand from Elliott Wave International (where subscribers have access to regular, in-depth analysis to track the unfolding wave patterns on a day-to-day basis):
As I've been noting in this blog, there is some sort of connection between astroharmonics and Elliott Wave patterns in mass "e-motion" (energy in motion). Right now, we are in the wake of the lunar eclipse conjunct Pluto and approaching the "Av 1" total solar eclipse on July 11th. With the Puetz eclipse crash window the DJIA dropped almost 10 percent. While the "window" closed this week three days after the lunar eclipse, that can be misleading. For example, in 1987, following a lunar eclipse on October 7th, the stock market crashed over 13 days into just before the new moon when the bottom was reached. A similar pattern along with the lunar cycle occurred with the 1929 and 1997 financial panics. Thus, even though the stock market is deeply oversold and ripe for a bounce here, the potential for the bottom to fall out remains, especially given how full-fledged crashes usually occur in the context of deeply oversold conditions. If, indeed, we are in the midst of an Elliott Wave Minor wave-3 during Primary wave-3 down, then much lower lows likely lie ahead in the near-term. However, the potential for a crash does seem limited given that seasonally this is not the typical time of the year for straight-up financial panics which most often take place during the "Fall".
The possibility remains that the form negative, destructive mass e-motion (energy in motion) takes could be a geopolitical shock, i.e., war. While the potentially explosive situations in the Mideast and on the Korean Peninsula appear to have simmered down, the possibility of an unexpected, historic upset must be deemed very high in the context of the current wave patterns and astroharmonics, particularly given "Kremlin Astrology".
UPDATE - Just after writing this blog I was checking charts at Yahoo Finance and saw the following:
Is this a portent of some sort?
This would normally seems absurdly improbable, but what is notable is how the current situation is parallel to right before 9/11. Just before the terrorist attacks in September 2001, the DJIA broke below the psychologically important 10,000 mark and there was a "Death Cross" when the 50-day moving average crossed below the 200-day moving average. The exact same sort of market pattern is unfolding now:
Coincidence?
