Elliott Wave Stock Market Forecast - March 2, 2007

The decline that I anticipated in my last update finally arrived this week...with a bang! Since the February 20th high, the DJIA has lost almost 700 points...declining (so far) to the initial support area of 12100 that I mentioned one month ago. Interestingly, the date of the DJIA's 12795 intraday high occurred a Fibonacci 13 weeks from my previously cited Fibonacci Cycle week of November 24, 2006.

Now, if my wave count is correct, the correction currently underway will set up the final rally of PRIMARY wave (B). I still expect the DJIA to top out later this year around 13040...however, it is also possible that the final high could be delayed until early next year. Once the high of PRIMARY wave (B) is in place, the entire rally since the 2002 low will be retraced. During that decline, the DJIA will finally break its 33 year old (semilog scale) CYCLE wave trendchannel...and a massive financial panic will likely ensue. Fortunately, you still have time to prepare for it!