Dear Fellow Elliotticians
Most major stock markets have been in a bull market for almost a decade. Unfortunately, after last week’s selloff it is now evident that this bull market is over.
The S&P 500 is down 17.8% from its all-time high reached three months ago, despite a still strong economy and relatively low interest rates. This divergence between economic reality and market behavior is creating the impression that the current drop is a great long-term buying opportunity.
One day I will agree with that idea, but not today. The markets have not experienced a correction of more than 20% since 2008 and many believe such large declines are no longer possible.
I strongly disagree and the S&P 500 Elliott Wave analysis our premium subscribers are going to receive tomorrow suggests the current selloff is far from over.
I am not writing this to cause panic. Quite the contrary – it is very important to stay calm and rational during such disturbing times. But in order to be able to do that, one has to be prepared. That is where the Elliott Wave principle can be very helpful.
Many other market analysis services have been calling for a big bear market constantly for many years, in order to take advantage of the fear they create and increase their sales. We at EWM Interactive have never used this mean tactic.
Now, however, I am afraid they are finally right and it is going to get a lot worse before its gets better. The time when it was safe to ignore the doomsayers is over.