3rd Wave of Bear Market

According to Elliott Wave theory, dominant trend is going in 5 waves and corrective trend in 3.

Here is a 3-yr chart of Dow Jones Industrial Average, as I see it:

If my technical analysis is correct, we are going to see a significant decline in stock prices and formation of a “double bottom”.

There is also a possibility of a different scenario: The market will continue moving up, extending the 3-wave of correction into 11,000 territory. Such move would transform the correction trend into a 3rd wave of a Bull Market.

In my opinion, the first scenario is much more likely, considering the fundamental information. Unemployment is creeping up; “affordable real estate” has definitely improved, but luxury homes are just hitting bottom and Commercial real estate is falling deeper and faster; Banks didn’t learn any lessons and are robbing taxpayers in broad daylight; dollar is week and may lose the ground; government is printing money for the wrong means…

The main question now – when would cheap as dirt money improve the economy (and create a new bubble)?