Wednesday, January 27, 2010

Correction Signs of 2000, 2007 Happening Now

Robert Prechter, president of Elliot Wave International, offered a thumbnail timeline of recent market drama, pointing to "late February, early March of 2009...We had so many very powerful indicators indicating a bottom. At that very bottom day, the 6th of March, as low as 2 percent of traders were bullish."

That week presented the "kinds of signals" his team takes as proof of a rebound: "We had an upside target of around 10,000 in the Dow — we exceeded that at 10,700."

"But again, we're now seeing a lot of signals that we saw at the top in 2007 — and even at the earlier top in 1999 to 2000."

Prechter also believes that gold and other commodities, as well as corporate bonds, are headed downward.

http://www.cnbc.com/id/35086130

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