Crashes are quite natural events in the stock market.  In fact, they are built into the required behavior of actionary (upward moving) trend progression. The fractal nature of market movement requires that price create ever larger patterns at ever larger scales. These "larger patterns" logically contain larger reactionary waves.

A future reactionary (counter-trend) event greater in vertical price size than the great crash of 1929 is inevitable due to the fixed structure of movement inherent in the mechanism that governs mass psychology. As shown in this graphic, trend progression is based on the production of ever larger reactionary events. This trait guarantees that the 1929 crash, the largest reactionary event to date, will be trumped at some point by an even larger event - not necessarily a crash, perhaps a super bear market - but a larger event nonetheless. It is not a question of if but when.

Contrary to popular opinion, crashes are quite natural events in the stock market; in fact, they are built into the required behavior of actionary (upward moving) trend progression. The fractal nature of market movement requires that price create ever larger patterns at ever larger scales. These "larger patterns" logically contain larger reactionary waves.

In the above mentioned graphic the 3-wave magenta Path is the same movement in both phases 1 and 2. If we say that the first reactionary shown in the blue Path equals 1, then for price to progress as it must, the next Path must create a larger reactionary, as depicted in the theoretical measurement give the magenta reactionary, namely 2. This reactionary is trumped by yet another, measuring 3, as shown in the red Path. At this point the trend reaches a terminal area and a full-fledged downward movement is now in order.

So exactly where are we (as of November 2006) in this process? Viewing price data back to the year 1854 we see two significant reactionary waves. The first runs from sometime prior to 1854 and ends in 1857. That reactionary was not trumped by any other for 72 years, but 1929 trumped it. This means that the events in the intervening 72 years can be effectively ignored. And so, using our graphic again to illustrate, the '29 crash is the magenta reactionary. The reactionary that ended in 1857 is part of the blue Path. We seem currently to be somewhere near the extremity of the magenta Path which is also near the end of the first upward leg of the red Path.

Once we finish the actionary wave that is the current bull market beginning late 2002, we should be due for a reactionary to trump the 1937-42 reactionary. Once that happens any new all-time record high thereafter will put the market right at the brink of the largest reactionary ever. Speculating from the timing of the 37-42 reactionary the market could reach such a point in as little as 12-15 years. The question is, will we even reach that point? A reactionary to trump the 37-42 move would likely take price down to sub 7000 levels. With the Dow just topping 12140 that's nearly a 50% loss.

It has now been 78 years since we've seen a major reactionary event at the largest price cycle. That the market and economy will undergo a cataclysmic event is even prophesied in scripture.

Into the streets they will throw their very silver, and an abhorrent thing their own gold will become. Neither their silver nor their gold will be able to deliver them... - Eze. 7:19

Of course, the initial application of this prophecy was fulfilled on ancient Jerusalem in 607 B.C.E. But other biblical evidence points to a global fulfillment in our present time. Hence, it would be wise for market and money obsessed watchers of today to reconsider their valuations in life.

Future generations will never be able to observe live the fascinating progression of price as it exists in today's markets (esp. the Dow), simply because modern man, with his stupid politics and lying religions, is ruining everything.