Major stock market trends mirror the ups and downs of society’s overall mood state – or social mood, as it is termed it in the new science called socionomics. A rising (bull) market indicates improving social mood, while a falling (bear) market signals that society’s overall mood is worsening.
Of course, social mood as the driving force behind stocks, economy and cultural trends turns the conventional idea of causality completely on its head. For example, it means that investor confidence doesn't follow the trend in the stock market; instead, stock market trends follow investor confidence. News doesn't create stock market trends; social mood determines both the character of human events and the trend in stocks.
The entire article can be found here:
http://www.elliottwave.com/freeupdates/archives/2009/04/30/Swine-Flu-and-Elliott-Wave-Analysis-Updated.aspx
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Quantitative Trading - Equity, Global Indices, Commodities & Currencies
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