NEoWave Institute’s Glenn Neely is forecasting the largest vertical drop of the decade for the S&P 500. Neely predicts the stock market will decline 50% in the next 6 months. Neely is an Elliot Wave theorist:

“Technically speaking, according to NEoWave a correction began at last October’s low; the March-June rally is the final leg of that correction,” Neely explains. “The March-June rally is now ending, allowing the bear market to resume. During the next six months, the S&P will decline 50% or more, breaking well below 500!” Currently, the S&P is hovering around 917.

Other Elliot Wave analysts are also tentatively calling  either an end to the rally now, or that it is coming soon.  For example, Tony Caldaro:

MEDIUM TERM: uptrend that may have topped

‘If we count the SPX 956 high as the end of the uptrend. Then the decline from that level can be counted as a five wave Minor wave 1: 936-946-920-928-904. From today’s oversold levels we would now get a rally, Minor wave 2, back to the previous 4th wave (928), or even challenge the 935 OEW pivot. This should generate an overbought short term momentum reading before the market turns over and enters a declining Minor wave 3. The 935 OEW pivot should act as significant resistance during this rally. Should the market break through this resistance then some other wave count is at work. Should the market break below SPX 904 before rallying above 920, then Minor wave 1 would be extending.”