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Elliott Waves and Market Cycles: Both are "Nodding in Agreement"
Learn what both say about the market

By Bob Stokes
Mon, 17 Oct 2011 14:00:00 ET
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Combine Elliott wave analysis with stock market cycle data and you'll have a market forecast you can use.
 
Let's take a look at cycles, in general.
 
You'd be amazed at how frequently cycles appear. From new membership rates of the Presbyterian Church to the population of Illinois chinch bugs, from heart disease in the northeastern U.S. to grasshopper plagues, from cheese consumption to wheat acres harvested. Then there's brain waves, marriage rates, Atlantic salmon populations, aluminum production, even international wars...
 
...And yes, stock market cycles.
 
All these examples are in the book, Cycles: The Mysterious Forces Which Trigger Events by Edward R. Dewey and Og Mandino. Here's a quote:
 
"The science of cycles: deals with events that recur with reasonable regularity. Such events may be in nature, business, or anything else. The important thing about regularity is that it implies predictability.
 
"Many cycles in nature seem to have the same wavelength as cycles in human affairs..."
 
EWI president Robert Prechter has served on the board of the Foundation for the Study of Cycles, which Dewey founded in 1942. Early in his career (1982), Prechter addressed the Market Technicians Association:
 
"Even though my main market tool is the Elliott Wave Principle, I follow a good number of other technical methods. One that is particularly useful is cyclic analysis...It is a rare market that does not exhibit clear cyclic tendencies."
 
For example, consider the 3-year cycle tendency of 1920-1932:
 
 
  
"It was this 3-year cycle, which delineated all of the bottoms from December 1920 to the crash bottom in 1932...
 
"The major setbacks along the way were marked by this 3-year cycle...
 
"I’m showing you this because we’ve had the same set up in modern times. It’s a different-length cycle, but the idea is the same."
Elliott Wave Theorist, August 2011
 
This "different-length cycle" is 7-1/4 years, and has been evident in the market since 1980. Moreover, two more time-cycles confirm the message of the one just referenced. All three point to the same year for a bear market low.
 
How about the stock market between now and that projected low? How do we see that trend unfolding?
 
When Robert Prechter shows time cycles and the Elliott wave count in the special video August Theorist, he paints a very convincing forecast right before your eyes.
 
See 3 additional time-cycle charts which relate to today's market. Plus, see market charts based on Elliott wave analysis. See how both are telling one market story. 

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 Bear Market Low: See What Elliott Waves and Market Time-Cycles Show

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Tags: Robert Prechter, Elliott Wave Theorist, market forecasts, U.S. STOCK MARKET, Elliott Wave Principle, stock market cycles
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