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Lesson 33: A FORECAST FROM 1982, PART II 
excerpt from 
The Elliott Wave Theorist 
September 13, 1982 

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THE LONG TERM WAVE PATTERN — 
NEARING A RESOLUTION 
Continued from Lesson 32 
Double Three Correction Ending in August 1982 
The technical name for wave IV by this count is a "double three," with the second "three" an ascending 
triangle. [See Figure A-3; note: Figure D-2 places [W]-[X]-[Y] labels on this pattern.] This wave count 
argues that the Cycle wave correction from 1966 ended last month (August 1982). The lower 
boundary of the trend channel from 1942 was broken briefly at the termination of this pattern, similar to 
the action in 1949 as that sideways market broke a major trendline briefly before launching a long bull 
market. A brief break of the long term trendline, I should note, was recognized as an occasional trait of 
fourth waves, as shown in [R.N. Elliott's Masterworks]. [The main] disadvantage of this count is that a 
double three with this construction, while perfectly acceptable, is so rare that no example in any 
degree exists in recent history. 
Figure A-3 
A surprising element of time symmetry is also present. The 1932-1937 bull market lasted 5 years and 
was corrected by a 5 year bear market from 1937 to 1942. The 3½ year bull market from 1942 to 1946 
was corrected by a 3½ year bear market from 1946 to 1949. The 16½ year bull market from 1949 to 
1966 has now been corrected by a 16½ year bear market from 1966 to 1982! 
The Constant Dollar (Inflation-Adjusted) Dow 
If the market has made a Cycle wave low, it coincides with a satisfactory count on the "constant dollar 
Dow," which is a plot of the Dow divided by the consumer price index to compensate for the loss in 

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purchasing power of the dollar. The count is a downward sloping [A]-[B]-[C], with wave [C] a diagonal 
triangle [see Figure A-3]. As usual in a diagonal triangle, its final wave, wave (5), terminates below the 
lower boundary line. 
I've added the expanding boundary lines to the upper portion of the chart just to illustrate the 
symmetrical diamond-shaped pattern constructed by the market. Note that each long half of the 
diamond covers 9 years 7½ months (5/65 to 12/74 and 1/73 to 8/82), while each short half cover 7 
years 7½ months (5/65 to 1/73 and 12/74 to 8/82). The center of the pattern (June-July 1973) cuts the 
price element in half at 190 and the time element into two halves of 8+ years each. Finally, the decline 
from January 1966 is 16 years, 7 months, exactly the same length as the preceding rise from June 
1949 to January 1966. [For the full story on The Elliott Wave Theorist's long term assessment of this 
index, see Chapter 3 of At the Crest of the Tidal Wave.]