Looking back in time always gives us a different perspective if we take the time to actually do it. I’ve done this thousand’s of times, and each time looking for a better fit. The common question is, “How deep or low can the DJIA fall down to”? Since the 2000 peak we’ve had more forecasts of the DJIA crashing well below 1000 many times and yet this has never happened. In 2009 the markets sure dipped to a new low and well below the previous 4th wave of one lesser degree. The DJIA stopped dead in 2009, but nowhere near any previous 4th wave during the 1990’s stock mania.
The reason this has not happened is that all other wave counts are calculated as 5th wave extensions. I will stress the fact that it’s, “Impossiable” for the EWP to create 5th wave extensions lasting 2 or even 3 generations.
The 2018 peak is a Cycle degree peak which eventually has to be fully corrected before another huge bull market in stocks will start. The public will call it a bear market and the big question may be, “How deep can the DOW fall”? We have three important turning points, with the 2016 low being just one price area that we can see again. At a bare minimum, the DJIA should slip below the 14,000 price level. Longer term, any price low below 2011 lows, will get us closer to a bear market that is finishing.
This will not happen overnight as it will take as long as solar cycle #25 has not started.
The DJIA has made an impressive short term run that, at a minimum should give us another correction soon or the end of this bullish phase.