ASIA

Most Asian stock markets have completed their multi-month corrections or should do so in early April.

This action follows the “final wave down” scenario that our alternate wave counts allowed for last month. We

expect the ensuing rally to last several months, if not longer. We have altered our longer-term wave counts

for Japan and some other Asian markets, because their corrections have gone deeper than expected.

During the sell-off into the mid-March low, measures of investor behavior reached levels of fear that

we view as capitulatory. At the same time, several news events outside the financial markets evidenced panic

and despair, the emotions most associated with the ends of major social contractions. We review these items

in this issue. The completed wave counts in the Asian region imply that social mood has also hit its low for

this correction. But since social actions tend to lag sentiment extremes, we expect the drama to continue for