What would R.N. Elliott do with these market numbers?

What would R.N. Elliott do - the founder of Elliott Wave analysis - if he saw this market and these numbers? First, an odd note - I learned recently that he projected that the end of Supercycle Wave (V) would probably fall on or somewhat before 2012. Nice number there! Looking at the long-term charts, some numbers finally jumped out at me in conjunction with some of the numbers I've already been looking at for several months now. First, some information - in Elliott Wave, once 5 waves up have finished, then it can either be counted as a completed larger wave One (unless the 5-wave structure occupies some other position within a larger wave.) And a common Fibonacci retracement level for the second-wave correction from a first wave, is .618. Now, if the S&P 500 index were to lose 61.8% of its total dollar price from the October 2007 peak of 1576, that would send it to 602.03. Also, the .707 retrace is another important number since market price will often actually overshoot the target level, so it could overshoot the .618 retrace to land at .707. Retracing the SPX from its all-time high to .707 of the way to absolute zero would be 461.77. The comparable numbers in the Dow Jones Industrial Average would be 5423.64 and 4160, respectively.

Hmmmmm, makes me think that if we ever see those numbers, maybe it's a buy??? For that matter, if you've seen my monthly long-term charts of the SPX and DJIA, you know that the projections for a C wave of an expanded flat - you know, the idea that other EW'ers don't seem to have so maybe it's "wrong" - also point to numbers very close to those levels (my charts are below). Is this eerie or what??! Almost makes me wish the market would just get it over with, get to that number, and then let us pile on with the idea that there's some kind of third wave around the corner. Or maybe I just need to wake up and smell the coffee! Would R.N. Elliott consider such levels to be a terrific buy, on the theory that a great new wave up must be around the corner? Perhaps. The pessimistic way of looking at it would be to say that the entire party is over and will never recover. That the only way the market ever recovers anything that looks like value will be fake, a charade of hyperinflated dollars. (Somehow that reminds me, while so many are talking down the dollar, it might be like what Churchill is reputed to have said about democracy: yes it's terrible, except when you compare it to the alternatives!)

Here are my charts, with the annotations about C-wave price levels that I had placed on there months ago (at the time I'd been thinking of what my late trading mentor would have done, but I do think it's what good ol' R.N. would have considered too):


Ooops, this post has that default label I set up for Elliott Wave, that refers to Tony's OEW. Well maybe Tony's chart markings for the peak are consistent with these ideas anyway, being wave V and all that (I just don't know about the part for what happens next - I know Tony is looking for an intermediate B wave bear market rally, I'm not certain that's the same as my idea for a C-wave in an expanded flat however - doesn't matter for trading purposes as we'll trade it as we see it no matter what).