This is just an extract from Mr.Steven. J.Williams Blog.
Even the "Tower of Terror" ride at Disney World (Orlando, FL) does not have a free-fall drop as much as the DJIA fell at times over the past week. It almost makes you think twice about eating a big meal before getting aboard the DJIA rollercoaster.
Taking a very long term look at things I pull out my updated 200 year chart and some zoomed-in charts of the current situation. The top is CyclePro's most noted chart. This is a 200 year history of US stocks with yearly Hi-Lo-Close bars all adjusted for BLS inflation rates. As is easily visible on a log scale chart, stocks stay within a consistent channel through its entire history. Each time it touches or pierces the upper channel, eventually it moves to the lower channel, and vice versa. There is even a higher channel line (orange) that has only been touched in 1929, 2000, and 2007. The lowest channel line (orange) has only been touched in 1813 and 1982. The 1900-1906 double touch was followed by a bear market through 1920. The current 2000-2007 double touch may follow a similar pattern. My target is actually 2016-2018. Even the 1906 bear market initially came down to the centerline, bounced up, and then fell through several years later. I expect the same to happen this time around with my target no later than 2012 — but maybe we are already there…
Extract : http://www.geocities.com/WallStreet/Exchange/9807/Charts/SP500/Outlook.htm