We are looking for one more spike rally which will then be quickly reversed. When that occurs, it will suggest wave a-up from November 2012 has topped. That spike rally should occur sometime over the next two weeks, with wave "a" possibly topping within a few days of our March 1st, 2013 scheduled phi mate turn date. There is growing evidence that a top is approaching, one that will be followed by a sharp decline of 5 percent or more. That decline will scare a lot of folks into believing the markets are starting a massive decline. Our take is that it will only be wave b-down of an a-up, b-down, c-up rally for the final wave e-up that completes the multi-decade Jaws of Death (SM) pattern. Wave c-up will take your breath away, be strong, taking the Industrials toward 15,500 to 16,000, the upper boundary of the Jaws of Death pattern, creating a false sense of security. In other words, markets are about to play with our heads, scaring investors with wave b-down, then giving a false sense of euphoria with wave c-up. Once the Jaws of Death finishes, a massive decline will begin that lasts several years, and could be worse than we have seen in centuries, Grand Supercycle degree wave {IV} down. I am putting the finishing touches on a book I have written to cope with the coming Grand Supercycle degree Bear market. The evidence that wave a-up will soon top is shown this weekend in both the Elliott Wave labeling and in mature Bearish Divergences between the 10 day average Advance/Decline Lines and prices for three major averages, Blue Chips, Techs, and small caps. We show those divergences on pages 10 and 11.

Weekend Market Forecasting and Trading Report