The Next World War? It Could Be Financial.
"The global financial outlook grows more dire by the day: The United States has been forced to shore up Wall Street, and European governments are bailing out numerous commercial banks. Even more alarmingly, the government of Iceland is presiding over a massive default by all the country's major banks. This troubling development points not only to an even more painful recession than anticipated, but also to the urgent need for international coordination to avoid something worse: all-out financial warfare."
Wave C Personality - Page 78 of Elliott Wave Principle
"Declining C Waves are usually devastating in their destruction. They are third waves and have most of the properties of third waves. It is during these declines that there is virtually no place to hide except cash. The illusions held throughout waves A and B tend to evaporate and fear takes over. C waves are persistent and broad. 1930-32 was a C wave. 1962 was a C wave. 1969-70 and 1973-74 can be classified as C waves."
Remember that this C wave is one fractal higher then any of the C waves described above. Meaning that my all standards of measurement, it will be a degree higher, i.e. worse point decline, worse percentage decline, worse log scale decline, it fact, it should be the worse decline in the lifetime of any market participant, since the last decline of this magnitude was in the 19th Century. Keep in mind that the stock market races ahead of the underlying fundamentals by at least six months. Thus the worse news stories, much worst then what is linked above appearing in today's Washington Post, are still down the road. Also down the road, sadly, is something that accompanies virtually all bear market bottoms: Another war.
The market does not travel in a straight line. There will be rallies within the confines of the wave C structure. They will be sharp (like the 1000 point rally in the DJI last Friday), but fleeting. All of them, every one, to be followed by new lows.
All probabilities favor the downside, until further notice.