Came across this stock market chart (which looks rather sketchy due to the way I had to reproduce it) from the early 1700s in a book of Robert Prechter's. He has given it an overall EW count which is rather scary based on where it indicates we are right now.
Based on his larger count it's approaching a wave 4 down, but on the smaller count an A-B-C correction - for the first time ever in the history of the US stock market at that count level. Given that wave 2 and wave 4 correspond to the depressions of 1837 and 1929 respectively, how far would two legs down take the market, and what sort of depression(s) would that involve?
While not shown on this chart, another count he has since 1932 puts now at the top of a wave 5 as well, as does yet another one from 1974.
In later commentary he states that the "best news of all" is that the resulting depression would likely be brief... relative to the advance before it. Well that was about 70 years...
And as to the result of a depression: "In a crash and depression, we will see stocks going down 90% and more, mutual funds collapsing, massive layoffs, high unemployment, corporate and municipal bankruptcies, bank and insurance company failures and ultimately financial and political crises."
And just as we're approaching the end of the Mayan calendar grand cycle as well!