RCKS: In spite of my earlier cries that Eli's was leaving and has left, with the technical damage of this drop well below the Oct 2007 falling wedge, it is likely the market has entered a period rarely seen. If so, we are in a revaluation period and this low will only produce a rally that remains below the now broken falling support line of the SPX Oct 2007 falling wedge. If that is the case, a low in the 960 general area will not be "the" low for this decline.
Given that the US is well overdue a severe recession, given that the K Wave has approximately a 50/60 year cycle, we just may go through a drawn out recession if not a depression, especially given our Government's free market interference.
In 1907 and 1920 we had two very short depressions (each lasted only a year or less) where the Government failed to do anything. However, following the 1929 stock market crash, the Government got very busy (enacting a lot of socialist and protectionist programs), which many market and business cycle historians believe extended and made worse the depression. It took World War II to pull the US out of it...
LG
