There continues to be similarity in the trading pattern of 2011 compared to 2008. The next leg down to the green arrow is expected to commence soon. The November whipsaws are nearing completion.
December in particular looks very bearish.
As shown though the end result is anticipated to look much different in 2012 than it did in 2008. Instead of a crash, a massive rally kicks off from the green arrow. Despite the economic malaise, 2012 looks extremely bullish!
Make no mistake, eventually the markets will reflect the deteriorating economic conditions, and my cycle work predicts how and when this will occur.
The 2008 comparison is a convenient way to show what is anticipated next. The main evidence comes from my other cycle work. For example, the symmetry charts indicate another plunge, the cycle analysis looks bearish, and other methods are in agreement. I will outline more specific thoughts as to the important dates, and smaller time frame patterns later.
Some downside early next week is possible, but a solid bounce is anticipated next week before the more bearish cycles start to become active.
This is the pattern from the 2008 crash: