Pull up the 2- year S&P chart, study the price movements, and compare it to the chart linked below. http://2.bp.blogspot.com/_PJwhYXjOhjU/S2ta4MZgbQI/AAAAAAAAALs/SLoFu8zCziQ/s1600-h/FutureCycles.png Want to know the scariest thing? I made this chart in November 2009 (http://abcsofgas.blogspot.com/2010/02/credibility.html) and predicted some major events (like for example, we had never had a sell-off greater than 8% at the time, and I called for a huge 25% crash WAY IN ADVANCE when the S&P reached 1235 which it did exactly that). It's one thing to call for a crash, but it's another thing to accurately predict every top and bottom within 1% over a very long 18 month period. Credits due to cycle theory which was applied throughout the chart. I didn't know it was so powerful until I looked back at this chart and my jaw dropped. True story.