Year 2000 marked an orthodox peak in the U.S. stock market, and that is more evident in inflation-adjusted terms. That peak was likely the 3rd wave of Grand Supercycle degree. The successive price action until now has been part of the 4th wave correction, which so far consists of developed waves A and B and is pending wave C.
The bearish triangle, being wave B, originates at the low of the year 2009, the end of wave A.
The all-time high of 2137.1 in May 2015 represents the high point (component wave (A)) of triangle wave B.
Since May, wave B began contracting after the August decline to 1833.5 and the pattern is nearing completion. The focal point of the contraction is being reached now. The typical contracting pattern repeats itself within an increasingly narrowing range until such a point that the standing wave disintegrates and is followed by a powerful downward thrust in the form of a wave "C".
The measurement of the full potential of the thrust is theoretically gauged at the origin of wave B at the low of the year 2009. However, based on the length of the measurement taken at that origin point, the depth of the implied downward thrust from present levels would actually annihilate the U.S. stock market, sending it deep into negative territory, which is not a practical outcome.
Nonetheless, other more recent lows in the market index also act as secondary origins for the triangle thrust, for example, the crash low of October 2014. A thrust measurement taken at that point, at least according to the heretofore developed structure of the triangle, still implies a minimum decline (counting from the all-time high, the top of wave B) into the range of 1175-1350.
The bearish triangle, being wave B, originates at the low of the year 2009, the end of wave A.
The all-time high of 2137.1 in May 2015 represents the high point (component wave (A)) of triangle wave B.
Since May, wave B began contracting after the August decline to 1833.5 and the pattern is nearing completion. The focal point of the contraction is being reached now. The typical contracting pattern repeats itself within an increasingly narrowing range until such a point that the standing wave disintegrates and is followed by a powerful downward thrust in the form of a wave "C".
The measurement of the full potential of the thrust is theoretically gauged at the origin of wave B at the low of the year 2009. However, based on the length of the measurement taken at that origin point, the depth of the implied downward thrust from present levels would actually annihilate the U.S. stock market, sending it deep into negative territory, which is not a practical outcome.
Nonetheless, other more recent lows in the market index also act as secondary origins for the triangle thrust, for example, the crash low of October 2014. A thrust measurement taken at that point, at least according to the heretofore developed structure of the triangle, still implies a minimum decline (counting from the all-time high, the top of wave B) into the range of 1175-1350.