Social Mood Conference | Socionomics Foundation
This essay by Mark Galasiewski originally appeared in The Socionomist in April 2009.

In early March, Newsweek’s cover proclaimed, “Radical Islam Is a Fact of Life. How to Live With It.” Socionomist Mark Galasiewski believes that the headline probably marks the multi-year peak in Islamic extremism.

In the April issue of The Asian-Pacific Financial Forecast, Galasiewski argues that in Arabia and Central Asia—the two major centers of radical Islam—Jordan’s and Pakistan’s stock indexes are excellent proxies for social mood. He observes that major declines in these stock markets have tended to coincide with upswings in terror and other violence. The opposite is also true: When these markets rallied, Islamic terrorism and fighting fizzled.

For example, the war between Hamas and Israel over Gaza in December and January occurred after a decline of about 50% in the Amman General Index. According to Galasiewski’s Elliott wave analysis, the terrorist attacks on the Marriott Hotel in Islamabad and multiple centers in Mumbai followed the wave (A) decline in the KSE-100. He sees the attack on the Sri Lankan cricket team in Lahore in early March as a lagging effect of the low of wave (C). If Pakistani Taliban leader Baitullah Mehsud fails to make good on his promise to attack Washington, D.C. “soon,” Galasiewski believes it will be a confirmation of a bottom in Mid-Eastern social mood.

In addition to Elliott waves, Galasiewski supports his forecast with Paul Montgomery’s magazine cover indicator. Montgomery (Universal Economics, first noted in the early 1980s that trends tend to make the covers of leading news magazines just as the trends are peaking. Galasiewski points out that Newsweek’s capitulation to the reality of Islamic extremism is dated March 2, one day before the low in the Amman General.

Galasiewski cautions that Middle Eastern and Central Asian extremists probably have one or two big tricks up their sleeves, as the mood in the early stages of a bull market tends to stay negative for some time. But societies lose their tolerance for antisocial behavior during bull markets, so Galasiewski’s analysis indicates that these provocateurs will have to wage their battle uphill.■

Mark Galasiewski is the Editor of The Elliott Wave Asian-Pacific Financial Forecast.

Socionomics InstituteThe Socionomist is a monthly online magazine designed to help readers see and capitalize on the waves of social mood that contantly occur throughout the world. It is published by the Socionomics Institute, Robert R. Prechter, president; Matt Lampert, editor-in-chief; Alyssa Hayden, editor; Alan Hall and Chuck Thompson, staff writers; Dave Allman and Pete Kendall, editorial direction; Chuck Thompson, production; Ben Hall, proofreader.

For subscription matters, contact Customer Care: Call 770-536-0309 (internationally) or 800-336-1618 (within the U.S.). Or email

We are always interested in guest submissions. Please email manuscripts and proposals to Chuck Thompson via Mailing address: P.O. Box 1618, Gainesville, Georgia, 30503, U.S.A. Phone 770-536-0309. Please consult the submission guidelines located at

For our latest offerings: Visit our website,, listing BOOKS, DVDs and more.

Correspondence is welcome, but volume of mail often precludes a reply. Whether it is a general inquiry, socionomics commentary or a research idea, you can email us at

Most economists, historians and sociologists presume that events determine society’s mood. But socionomics hypothesizes the opposite: that social mood regulates the character of social events. The events of history—such as investment booms and busts, political events, macroeconomic trends and even peace and war—are the products of a naturally occurring pattern of social-mood fluctuation. Such events, therefore, are not randomly distributed, as is commonly believed, but are in fact probabilistically predictable. Socionomics also posits that the stock market is the best available meter of a society’s aggregate mood, that news is irrelevant to social mood, and that financial and economic decision-making are fundamentally different in that financial decisions are motivated by the herding impulse while economic choices are guided by supply and demand. For more information about socionomic theory, see (1) the text, The Wave Principle of Human Social Behavior © 1999, by Robert Prechter; (2) the introductory documentary History's Hidden Engine; (3) the video Toward a New Science of Social Prediction, Prechter’s 2004 speech before the London School of Economics in which he presents evidence to support his socionomic hypothesis; and (4) the Socionomics Institute’s website, At no time will the Socionomics Institute make specific recommendations about a course of action for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended.

All contents copyright © 2022 Socionomics Institute. All rights reserved. Feel free to quote, cite or review, giving full credit. Typos and other such errors may be corrected after initial posting.