The Big BreakHarry Dent, Founder of Dent Research and

forecaster of the Japan collapse, the dot.com boom and bust, the real estate bust, and the 2008 crash has been warning of an epic bust ahead. After the Dow’s historic 1,000 point drop, is this

the beginning of the end?

Just one of Harry’s charts says: YES!

The Game ChangerS&P 500 Channel

Aug-

11O

ct-1

1De

c-11

Feb-

12Ap

r-12

Jun-

12Au

g-12

Oct

-12

Dec-

12Fe

b-13

Apr-1

3Ju

n-13

Aug-

13O

ct-1

3De

c-13

Feb-

14Ap

r-14

Jun-

14Au

g-14

Oct

-14

Dec-

14Fe

b-15

Apr-1

5Ju

n-15

Aug-

15O

ct-1

51,000

1,200

1,400

1,600

1,800

2,000

2,200

Source: Yahoo! Finance

1

2

3

4

5The Crash is here. The S&P 500 broke

through a channel that has held for over four years. It’s a game-changer.

Forecast: A Likely ScenarioAu

g-11

Oct

-11

Dec-

11Fe

b-12

Apr-1

2Ju

n-12

Aug-

12O

ct-1

2De

c-12

Feb-

13Ap

r-13

Jun-

13Au

g-13

Oct

-13

Dec-

13Fe

b-14

Apr-1

4Ju

n-14

Aug-

14O

ct-1

4De

c-14

Feb-

15Ap

r-15

Jun-

15Au

g-15

Oct

-151,000

1,200

1,400

1,600

1,800

2,000

2,200

Source: Yahoo! Finance

1

2

3

4

5Now that it’s broken through, there’s

likely nothing to stop it.

How Did We Get Here?

The Rising S&P 500 ChannelAu

g-11

Oct

-11

Dec-

11Fe

b-12

Apr-1

2Ju

n-12

Aug-

12O

ct-1

2De

c-12

Feb-

13Ap

r-13

Jun-

13Au

g-13

Oct

-13

Dec-

13Fe

b-14

Apr-1

4Ju

n-14

Aug-

14O

ct-1

4De

c-14

Feb-

15Ap

r-15

Jun-

15Au

g-15

Oct

-151,000

1,200

1,400

1,600

1,800

2,000

2,200

Source: Yahoo! Finance

1

2

3In its channel, the index predictably followed the classic Elliott Wave 5-wave pattern, hitting its third wave

peak on September 9, 2014.

The Third Wave HitsJu

n-14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-151,500

1,700

1,900

2,100

Source: Yahoo! Finance

3

2,019September 19, 2014

Here’s a closer look.

The Fourth Wave CorrectionJu

n-14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-151,500

1,700

1,900

2,100

Source: Yahoo! Finance

3

41,835

October 16, 2014

A classic, sharp, 4th wave correction quickly ensued. It finally ended with the

support of the bottom channel line.

Top of the Channel HitJu

n-14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-151,500

1,700

1,900

2,100

Source: Yahoo! Finance

3

4

2,075November 28, 2014

A rally the following month tested the channel top, but couldn’t quite break through.

The Fifth Wave Market PeakRounded and Failing Top

Jun-

14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-151,500

1,700

1,900

2,100

Source: Yahoo! Finance

3

4

5

2,135May 20, 2015

The S&P never quite met the channel top again. It finally limped into a 5th wave peak on May 20,

2015, forming a rounded and failing top.

Resistance MetJu

n-14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-151,500

1,700

1,900

2,100

Source: Yahoo! Finance

3

4

5

2,035August 20, 2015

The Fed-induced market bubble staggered for weeks. It finally closed on the bottom channel line on August 20, 2015. The moment of truth.

Falling Through ResistanceJu

n-14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-151,500

1,700

1,900

2,100

Source: Yahoo! Finance

3

4

5

1,970August 21, 2015

This time, it fell right through the long-held resistance, a clear signal that this bubble has

finally popped.

Below SupportJu

n-14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-151,500

1,700

1,900

2,100

Source: Yahoo! Finance

3

4

5

1,867August 24, 2015

And then it fell further.

Forecast: Two Likely ScenariosJu

n-14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-151,500

1,700

1,900

2,100

Source: Yahoo! Finance

3

4

5

This is likely the beginning of a major market crash. Don’t be fooled by a temporary rally.

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