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 08/24/16 4:00 PM EDT
US stocks opened lower and for the second day in a row closed at or very near the day's lows. It's been a long time since that has happened twice in a row. The DJIA closed down 66 points (0.3%) and the NASDAQ dropped 43 points (0.8%).

So where do the markets go from here? Has the up-trend ended? Or is it just a pause in a new bull market? Or perhaps the last gasp of the QE-fueled, aging bull? Will the bear market ever get back on track? Stay tuned!

 

Market Update - Tuesday 08/23/16 4:00 PM EDT
In a reversal of the recent daily trading pattern, US stocks opened sharply higher and then sold off the rest of the day to close up slightly. The DJIA ended up 17 points (0.1%) and the NASDAQ added 15 points (0.3%).

So where do the markets go from here? Is this rally for real? Is a new bull market underway, or is it the last gasp of the QE-fueled, aging bull? Will the bear market ever get back on track? Stay tuned!

 

Market Update - Monday 08/22/16 4:00 PM EDT
US stocks dropped at the open but yet another afternoon rally turned the markets mixed. The DJIA closed down 23 points (0.1%) and the NASDAQ added 6 points (0.1%).

So where do the markets go from here? Is this rally for real? Is a new bull market underway, or is it the last gasp of the QE-fueled, aging bull? Will the bear market ever get back on track? Stay tuned!

 

Market Update - Friday 08/19/16 4:00 PM EDT
US stocks dropped sharply at the open but yet another afternoon rally reduced the day's losses. The DJIA closed down 45 points (0.2%) and the NASDAQ slipped 2 points (0.0%).

So where do the markets go from here? Is this rally for real? Is a new bull market underway, or is it the last gasp of the QE-fueled, aging bull? Will the bear market ever get back on track? Stay tuned!

Update Archive

 

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 25% in just the first 6 months 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 term for 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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