Friday 22Jun2012 Chart of the Day

The following chart from todays EWI Financial Forecast Short Term Update.
Minor wave 3 has just started and should approach the October 2011 low.
Elliott Wave International's analysts believe we are in a multiyear secular bear market. They believe the current unfolding bear market will be even worse that the 17 month October 2007 to March 2009 decline. This chart shows the wave sequence for that decline. Notice on the left under the lower case b, the 1 and 2. If you believe/follow Elliott Wave theory, then on the right side we have just completed the same minor waves 1 and 2 and have now started minor wave 3 of intermediate wave (1) of primary wave 3 (circle). Primary wave 1 (circle) was completed in March 2009. The market rally from March 2009 to Early 2012 was nothing more than an extended A, B, C correction within the ongoing multiyear secular bear market that completed primary wave 2 (circle). Also notice how wave 3 is the longest of the 5 wave sequences. Now guess what is coming up later this year or 2013. A minor wave 3 of intermediate wave (3) of primary wave 3 (circle). If EWI's forecast plays out then we are in for some very brutal financial investment management times in the coming months.