Robert Prechter, founder of Elliott Wave International, the authority in Elliott wave, now says the stock market, "is in a topping area." "Stay away from the market for now." Prechter says this is akin to the market in 1966-74 or 1929-32, where massive bear rallies gave way to another "big leg down." He is predicting another crash in 2010 that will bring stock below this year's low. His advice,"keep cash and cash equivalents for now and wait out this bear market.
If I read him correctly, he is saying that Dow at March's low of 6547 is wave A. Last month's height of 10,092 is wave B. Now Dow is at the beginning of wave C. Very very bearish indeed.
Prechter thinks it will be another 5 or so years (2014-15) before we turn the corner. "By then it will be the buying opportunity of a lifetime." If he is talking about another 5 years, then most likely Dow is going for A-B-C-D-E or A-B-C-X-A-B-C sorts of formation.
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