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I received an email today from Dr. Robert McHugh with the following market commentary: (Dr. McHugh’s technical analysis newsletter has been consistently predicting the current market crisis for many months.)

We now find ourselves in a catastrophic Bear Market, Grand Supercycle degree Wave {IV} down, which is correcting a Bull Market from 1718, before the United States even started. We show this degree labeling in the big picture chart on page 13 in this weekend’s newsletter to subscribers. How do we know this? Because the S&P 500 fell to 752 Thursday, below the closing low the market formed at the bottom of the Bear Market in 2002. It means that low in 2002 was primary degree wave (4), that prices have now fallen below that bottom, which means the rally from 2002 to 2007 is a completed primary degree wave (5), which is all that was needed to complete a series of larger degree wave fives, supercycle degree wave (V)’s top, and Cycle degree wave V’s top. This is not good. It means there is a very high probability that we are going to see new lows far below Thursday’s 752. This hurricane is not over, not by a long shot.

However, the good news is we are about to enter a period of relative calm, the second phase - a rally/sideways phase - to this three phase Bear market. This Grand Supercycle wave {IV} down is correcting centuries of rally very fast, and furiously. Time-wise, it may be relatively short compared to other Grand Supercycle waves, but damage-wise, this Bear Market is going to change the world as we know it.