Five theories of the market's future. All bad short-term
I have come up with a few theories in trying to determine where we are and what could happen next. I believe we are in Sub-Millennial wave 1 (began June 1877), Grand Supercycle wave 5 (began March 2009), Supercycle wave 2 (began January 4, 2022), Cycle wave A (January 4), Primary wave 1 (January 4), Intermediate wave 5 (began June 2, 2022), Minor wave 2 (began June 17 at 1030 eastern time). This is the primary assumption as to where we are (and is referenced as 152A152 based on the wave), but I will explore what should occur next if this is true along with timelines. Theory #2 would have us in a wave ending in 152A52. Theory #3 would put us in a wave ending in 152A4A where Primary 3 just ended at 1030 on June 17 and therefore we will move up for a month or so. Theory #4 is that I am very off base in my wave markings while theory #5 would be that Elliott Wave Theory is only good for Monday morning quarterbacking and the Jacksonville Jaguars will win more times than Elliott Wave will. The U.S. economy is on the brink of major trouble and no one appears to be willing to do anything to stop it so theory #1 is the most plausible at this time. Recession is here and will linger for many quarters.
The beginning of Theory #1 must consider what could happen with Supercycle wave 2 (referenced as 152). Supercycle wave 1 lasted 3252 trading days and ran from March 2009 until January 2022. The index began at 666.79 and topped at 4818.62 for a total move of 4151.83 and rise over run of 1.277 points per day (move/trading days). Based on similar waves ending in 52, the models agree the most that this downward cycle could last 813 trading days which would put the end of this overall downward trend in March 2025. Even if this is true we would move upward again and possibly near all-time highs before falling down. The three closest end points would have this Supercycle ending after 397 trading days (August 4, 2023), 469 (November 15, 2023) and 542 (February 28, 2024). The median movement of waves ending in 52 will move 44.44% of the predecessor wave. This would put the median length at 1445 trading days (August 2027). While this does not bode well, the length could be much shorter as market and wave intensity continue to get more drastic possibly a byproduct of computer trading, technology, market participation, or other factors. Recent waves ending in 52 have seen wave 1 be 2-4 times greater than wave 2 in length. 813 days would be if wave 1 were 4x greater. More specifically, waves ending in 152 tend to last 30-100% of the length of wave 1 with a median length at 50%. The shortest possible lengths are the aforementioned 469 and 813 trading days.
Determining the length of Supercycle wave 2 is only half the battle. Waves ending in 52 tend to retrace or move 32-75% of their wave 1’s movement with a median at 50.17%. This means wave 2 could find its bottom in a range 1344.36-3116.36 below the index’s all-time highs. This would place the bottom between 1702.26-3474.26 with the median bottom at 2401.12. Waves ending in 152 slightly widen the retracement to 25.37-75.67% of the prior wave with a median at 45.71%. This could place the highest bottom at 3765.30 which we have already dropped below.
We can provide early estimates of Cycle wave A and Primary wave 1 inside of Theory #1, however, our next focus is on determining the end of Minor wave 2 inside of Intermediate wave 5. The ratios and percentages from the prior two paragraphs are still valid as this wave 152A152 ends in 152 and 52. Minor wave 1 lasted 11 days, dropped 540.64 points with a rise over run of 45.053. The length could be between 3-11 days. The models have the strongest agreement on 3 and 6 days long. Day 1 begins Tuesday June 21. June 23rd is 3 days with 6 occurring on June 28. A move between 25-75% of wave 1 could see a quick gain for the index of 137.16-409.10. This could place the top between 3774.03-4045.97 with a median at 3883.99.
If theory #1 proves true, we will likely move quickly over the next week with a top less than 4045.97. This would still provide quick and large gains. Theory #1 is most likely wrong or off by a wave if we drop below 3636.87 before moving above 3770. This theory is the most logical at the moment but I will publish my other theories over the coming days. Once a theory works, we will move forward with it and continue to provide updates going forward.
The beginning of Theory #1 must consider what could happen with Supercycle wave 2 (referenced as 152). Supercycle wave 1 lasted 3252 trading days and ran from March 2009 until January 2022. The index began at 666.79 and topped at 4818.62 for a total move of 4151.83 and rise over run of 1.277 points per day (move/trading days). Based on similar waves ending in 52, the models agree the most that this downward cycle could last 813 trading days which would put the end of this overall downward trend in March 2025. Even if this is true we would move upward again and possibly near all-time highs before falling down. The three closest end points would have this Supercycle ending after 397 trading days (August 4, 2023), 469 (November 15, 2023) and 542 (February 28, 2024). The median movement of waves ending in 52 will move 44.44% of the predecessor wave. This would put the median length at 1445 trading days (August 2027). While this does not bode well, the length could be much shorter as market and wave intensity continue to get more drastic possibly a byproduct of computer trading, technology, market participation, or other factors. Recent waves ending in 52 have seen wave 1 be 2-4 times greater than wave 2 in length. 813 days would be if wave 1 were 4x greater. More specifically, waves ending in 152 tend to last 30-100% of the length of wave 1 with a median length at 50%. The shortest possible lengths are the aforementioned 469 and 813 trading days.
Determining the length of Supercycle wave 2 is only half the battle. Waves ending in 52 tend to retrace or move 32-75% of their wave 1’s movement with a median at 50.17%. This means wave 2 could find its bottom in a range 1344.36-3116.36 below the index’s all-time highs. This would place the bottom between 1702.26-3474.26 with the median bottom at 2401.12. Waves ending in 152 slightly widen the retracement to 25.37-75.67% of the prior wave with a median at 45.71%. This could place the highest bottom at 3765.30 which we have already dropped below.
We can provide early estimates of Cycle wave A and Primary wave 1 inside of Theory #1, however, our next focus is on determining the end of Minor wave 2 inside of Intermediate wave 5. The ratios and percentages from the prior two paragraphs are still valid as this wave 152A152 ends in 152 and 52. Minor wave 1 lasted 11 days, dropped 540.64 points with a rise over run of 45.053. The length could be between 3-11 days. The models have the strongest agreement on 3 and 6 days long. Day 1 begins Tuesday June 21. June 23rd is 3 days with 6 occurring on June 28. A move between 25-75% of wave 1 could see a quick gain for the index of 137.16-409.10. This could place the top between 3774.03-4045.97 with a median at 3883.99.
If theory #1 proves true, we will likely move quickly over the next week with a top less than 4045.97. This would still provide quick and large gains. Theory #1 is most likely wrong or off by a wave if we drop below 3636.87 before moving above 3770. This theory is the most logical at the moment but I will publish my other theories over the coming days. Once a theory works, we will move forward with it and continue to provide updates going forward.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
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