Fugly charts, page-2

These charts are quite good. The topping formation on the SPX is very simple, just a head and shoulders, but Mr Lapoint doesnt know about logarithmic targets (570) nor does he realize that a fibonacci ratio between neckline and top is in place which will be talked about by analysts for many decades to come.

Because the situation with the Dow is so complex, he also doesnt realise that it has topped witha very rare Expanding Triangle (cant show chart on this site unfortunately).

If thats the case I expect a pullback from the current congestion area to to under the descending trendline around 8200. This will be followed up over time with a further drop to 5200 or so. This is somewhere near the trenline 1986-88-91, thus putting the market back about where it ought to be on a GDP growth basis.

Unfortunately, bear markets almost always overshoot, and my guess is we'll ultimately end up back near the 1987 level of 2000-2400. This is a long standing Elliott Wave forecast by Bob Prechter from his 1993 book. It has taken him a long time and a lot of ridicule to look like being right.

These forecasts match up with the more obvious ones on the SPX by Mr Lapoint.