S&P500 at 600 in the next 2 years???

One of my favorite blog read is John Hussman's blog.
http://www.hussmanfunds.com/

In june 19, 2006, Mister Hussman came up with the following assumption:
S&P 500 Fair Value Below 800?
http://www.hussmanfunds.com/wmc/wmc060619.htm

Well not only is Mister Hussman right about that, but the value must
indeed be very much lower than that.
It is very possible that the S&P500 goes from 1326 (its high in May)
to 590.

Yep! 590 -------------------------- 590
--------------------------- You just heard well.

Why that?

Well, for those who believe in Fibonacci retracement (and everybody
should), there is a very powerful evidence of that.
Coupled with the most basic Elliot wave pattern, the thing is just too
obvious!

Do the following:
It is very simple (limit stupid).
Take the highest high of the S&P500 - 1553.
Get a 50% retracement from 0 (yes!, when the S&P started out) to 1553.
That is 776.
What was the value of the S&P500 in 2002 at its bottom = 768.
Pretty close, NO?

1553 to 768 was the first Elliot wave out of three.
You know those "recovery" type of waves!
Then the market rallied to 1326 close to the 1360 Fibonnacci level.
That was the second wave.

Now where does it is heading for?
593 folks. The third wave!

Freaky!
That is a 50% loss in two years.
And if the market was to crash it would head for a 25% low in a jiffy.
But that is not the "reasonable" scenario.
Although, market cycles can go a bit fruity like in 1987.

Do not worry though. After that flush, the market should head again for
all time highs.
Like usual.
This is just Mother nature!

.

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