Decline to New Lows Should Start Soon

2011 came to an end with most markets around the world
declining from 10 % to 70%. The only market which was up was the DJIA
index which was up 5%.
Nasdaq was down 2% while
Russell 2000 was down 7%.
In 2012 , Russell 2000 will also decline the most.
US stock markets made the peak on May 2, 2011 and made a
low in early Oct
in 5 steps down ( Thus we completed leg (1) down in early Oct.) Since
that time we have had leg (2) up in a complex double zig-Zag rising into Seasonal Christmas and new year rally.
We believe that the probability is very high that the market is now ready
for decline under leg (3)

See DJI2012-01-04_0742 

See also the chart of Russell 2000 Russell 20002012-01-04_0756