There’s a reason why markets undergo prolonged and deep declines. This is an ideal time to learn that reason, because we at Elliott Wave International believe the U.S. stock market stands at yet another historic turning point.
First let me say what this reason is NOT. It is not an external catalyst or news "event." If you’re an active investor, you probably have looked for signals like that. Free yourself of this unrewarding task. To understand the real reason why markets do what they do is to change your thinking from “unrewarding” to “rewarding.”
Let's begin in the right place, namely with EVIDENCE.
“Can you cite any obvious indication at the high that the Saudi market would reverse and plummet? Fundamentally oil [upon which the Saudi economy relies] has been trading near all-time highs. Technically, there was no top formation, no head and shoulders pattern, no slowing of the market’s ascent; in fact, the index accelerated in its final two months of rise and then further in its final few days of rise.”
Conquer the Crash, 2nd edition
If there was no catalyst, what caused the dramatic decline? The reason is pattern. Market prices follow the pattern of mass psychology. Mass psychology moves in waves, which unfold in apattern. Because mass psychology drives prices, price movements are indeed patterned.
Our analysts meticulously follow those patternsday and night. In turn we provide probabilistic forecasts based on those patterns. Benefit from our insight by subscribing to the
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