The Crash is here. The S&P 500 broke through a channel that held for over four years. It’s a game-changer.
Now that it’s broken through, there’s nothing to stop it.
In its channel, the index predictably followed the classic Elliott Wave 5-wave pattern, hitting its third wave on September 9, 2014.
A classic, sharp, fourth wave correction quickly ensued. It finally bottomed with the support of the channel line.
A rally the following month tested the channel top, but couldn’t quite break through.
The S&P never quite met the channel top again. It finally limped into a peak on May 20, 2015, forming a rounded and failing top.
Our Fed-induced market bubble staggered for weeks. It finally closed on the bottom channel line on August 20, 2015. The moment of truth.
This time, it fell right through the long-held resistance, a clear signal that this bubble has finally popped.
And it’s only fell further.
1. The Big Break Harry Dent, Founder of Dent Research and forecaster of the Japan collapse, the dot.com boom and bust, the real estate bust, and the 2008 crash has been warning of an epic bust ahead. After the Dow’s historic 1,000 point drop, is this the beginning of the end? Just one of Harry’s charts says: YES!
2. The Game Changer S&P 500 Channel 1,000 1,200 1,400 1,600 1,800 2,000 2,200 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 1 2 3 4 5 The Crash is here. The S&P 500 broke through a channel that has held for over four years. It’s a game-changer.
3. Forecast: A Likely Scenario 1,000 1,200 1,400 1,600 1,800 2,000 2,200 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 1 2 3 4 5 Now that it’s broken through, there’s likely nothing to stop it.
5. The Rising S&P 500 Channel 1,000 1,200 1,400 1,600 1,800 2,000 2,200 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 1 2 3 In its channel, the index predictably followed the classic Elliott Wave 5- wave pattern, hitting its third wave peak on September 9, 2014.
6. The Third Wave Hits 1,500 1,700 1,900 2,100 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 3 2,019 September 19, 2014 Here’s a closer look.
7. The Fourth Wave Correction 1,500 1,700 1,900 2,100 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 3 4 1,835 October 16, 2014 A classic, sharp, 4th wave correction quickly ensued. It finally ended with the support of the bottom channel line.
8. Top of the Channel Hit 1,500 1,700 1,900 2,100 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 3 4 2,075 November 28, 2014 A rally the following month tested the channel top, but couldn’t quite break through.
9. The Fifth Wave Market Peak Rounded and Failing Top 1,500 1,700 1,900 2,100 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 3 4 5 2,135 May 20, 2015 The S&P never quite met the channel top again. It finally limped into a 5th wave peak on May 20, 2015, forming a rounded and failing top.
10. Resistance Met 1,500 1,700 1,900 2,100 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 3 4 5 2,035 August 20, 2015 The Fed-induced market bubble staggered for weeks. It finally closed on the bottom channel line on August 20, 2015. The moment of truth.
11. Falling Through Resistance 1,500 1,700 1,900 2,100 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 3 4 5 1,970 August 21, 2015 This time, it fell right through the long-held resistance, a clear signal that this bubble has finally popped.
12. Below Support 1,500 1,700 1,900 2,100 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Source: Yahoo! Finance 3 4 5 1,867 August 24, 2015 And then it fell further.