Is an historic stock market crash underway on Wall Street?

We're just asking the question, not making a prediction.

But day by day, hour by hour, this year's market action is more and more saying... maybe?

 

Market Update - Wednesday 05/25/16 4:00 PM EDT
US stocks extended yesterday's rally with another solid day in the green. The DJIA gained 145 points (0.8%) and the NASDAQ tacked on 34 points (0.7%).

So where do the markets go from here? Was the rally today just another temporary dead-cat bounce? Has the bear market resumed? Stay tuned!

 

Market Update - Tuesday 05/24/16 4:00 PM EDT
US stocks opened sharply higher on "better than expected" news on the housing market,and then treaded water the rest of the day. The DJIA gained 213 points (1.2%) and the NASDAQ zoomed higher by 95 points (2.0%).

So where do the markets go from here? Was the rally today just another temporary dead-cat bounce? Has the bear market resumed? Stay tuned!

 

Market Update - Monday 05/23/16 4:00 PM EDT
US stocks opened the week a bit higher, but then treaded water the rest of the day, closing slightly lower. The DJIA ended down 8 points (0.0%) and the NASDAQ slipped 4 points (0.0%).

So where do the markets go from here? Was the rally today just another temporary dead-cat bounce? Has the bear market resumed? Stay tuned!

 

Market Update - Friday 05/20/16 4:00 PM EDT
US stocks opened sharply higher, but then trended down the rest of the day to close well off the morning highs. The DJIA closed up 65 points (0.4%) and the NASDAQ held more of the gains to close up 57 points (1.2%).

So where do the markets go from here? Was the rally today just another temporary dead-cat bounce? Has the bear market resumed? Stay tuned next week!

 

Update Archive

 

What in the world is going on with the markets? Indeed, it is a world-wide event. Most of the world's stock markets have dropped 10 to 12% so far this year, with China faring much worse.

So where do the markets go from here? We sure don't know. And anybody who claims to know exactly what's coming is lying to you.

The entire global financial system is in unprecedented, uncharted waters.

  • Global debt is much worse than it was in 2007.Z
     
  • Mega-trillions in derivatives trade like $1.00 trifecta tickets.
     
  • Despite eight years of near-zero interest rates, the global economies are barely registering a pulse.
     
  • Gold has been revived, and is up 18% in just the first 6 weeks of the year.
     
  • And on and on.

How bad are things? How unprecedented and uncharted?

Recently, several Central Banks entered the monetary Twilight Zone by cutting their benchmark interest rates to below zero. That's right, if you're a big bank, you can actually "make money" by borrowing money. When the loan comes due, you pay back less than the amount you borrowed. What a deal!

And the perverse flip side of negative interest rates is that when you deposit your hard-earned money in the bank, not only do you not earn any interest, the bank charges you a fee just for the privilege of making the deposit. You have less and less money in your account every day. What a rip-off!

All of this financial insanity can only be seen as a desperate last-resort attempt by Central Bankers to stimulate their economies by force-feeding them with "better than free money". (Free money that is conjured up out of thin air with a few mouse clicks, that is.)

About the best we can say for the markets ahead is "expect the unexpected."

 

But if there's one thing that all stock market analysts and forecasters agree upon, it's that "markets don't move in straight lines" (at least not for very long). Look at any chart of any stock, any commodity, anything that is traded on an open market and you just don't see long straight lines.

So if markets don't move in straight lines, how do they move? Again, look at any chart and it's obvious: markets move in zigs and zags. A more technical description of zigs and zags is waves. And there is no better way to analyze and interpret chart waves than with Elliott Wave analysis.

Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the largest independent financial analysis and market forecasting firm in the world. EWI's analysts cover every major market (stocks, currencies, bonds, energy, metals, commodities) worldwide, 24 hours a day.

The stock market waves have been warning of a major market meltdown for quite some time. Has that moment finally arrived?

As Bob Prechter warned, and as the market action during the 2008-2009 financial crisis proved,

"Bear markets move fast and are intensely emotional;
investors and traders who are prepared have greater
opportunities on the downside than on the upside."

We urge you to stay on top of the latest market action with commentary and reports from our friends at Elliott Wave International.

 

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