US Stocks Start Melting Down

Posted: August 4th, 2011 under Predictions, Stocks.

US stocks had a mini-crash of 4-5% today August 4th. The spiral calendar indicates they may make a short term low tomorrow Friday August 5th, 2011. We think this is the beginning of the second or third leg down in the continuing bear market from the 2000 or 2007 top depending on which index you are looking at.

DJIA

Spiral Calendar Clusters For DJIA As Of August 4th, 2011

Spiral Calendar Clusters For And Spiral Calendar Alignments Backwards From August 4th, 2011 For DJIA – click to enlarge

S&P 500

Spiral Calendar Clusters For S&P 500 As Of August 4th, 2011

Spiral Calendar Clusters For And Spiral Calendar Alignments Backwards From August 4th, 2011 For S&P 500 – click to enlarge

Nasdaq 100

Spiral Calendar Clusters For Nasdaq 100 As Of August 4th, 2011

Spiral Calendar Clusters For And Spiral Calendar Alignments Backwards From August 4th, 2011 For Nasdaq 100 – click to enlarge

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9 Comments »

  1. Hello. The cluster in the middle of the month could be a high, correct? With another low at the end of the month?

    Comment by Joe — August 5, 2011 @ 9:22 am

  2. Hello again.
    Any chance that today could be both a high and a low?

    Comment by Joe — August 5, 2011 @ 9:27 am

  3. Today’s minor bounce (Friday August 5th 2011) might be wave A of a corrective rally possibly the first of multiple wave 4s following yesterday’s steep 3 of 3 wave behavior. This would place us somewhere in the B wave at the close with more rally in wave C early next week followed by resumption of the decline. I don’t think we are due for a rally lasting longer than a few days here yet. Any spiral cluster more than a couple of days out is very hard to predict as either a high or low and I’ve found it best to wait until the day before to assess things. Usually this gives you plenty of time to take advantage of a turn. Most traders over-anticipate things and markets can take their time to develop. Overall, I think we are just getting started to the downside.

    Dave

    Comment by Admin — August 5, 2011 @ 5:11 pm

  4. Thanks Dave

    Comment by Jacob — August 5, 2011 @ 6:31 pm

  5. Tuesday morning August 9th and the robust 3+% rally after lows in Europe and the US futures overnight may be the turn matching the August 6th date we were looking for. I think this rally is corrective only and that we will retest and likely break the lows, although the timeframe is uncertain – probably days and not hours or weeks.

    Dave

    Comment by Admin — August 9, 2011 @ 8:34 am

  6. So for example if we rise into Aug 15th-16th then it would mark a reversal and turn lower around that date?

    Comment by Chris — August 13, 2011 @ 7:28 am

  7. Yes – exactly. Most Elliott Wave counts have us in some degree and pattern of a wave 4 upward correction the end of which might fit this timing well.

    Dave

    Comment by Admin — August 13, 2011 @ 9:13 am

  8. Thank You.

    But could also mark a bottom should we drift lower into the 16th correct?

    Comment by Chris — August 14, 2011 @ 11:01 am

  9. Maybe – but given the upward correction since the Tuesday low, it would require another move down to make a B or X wave low depending on how you count the correction. On the other hand the up move is already made and just requires nothing major to occur. The accuracy is supposed to be plus or minus two days.

    Dave

    Comment by Admin — August 14, 2011 @ 3:25 pm

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