"..Now we're looking at a more normal valuation market. So far the retracement rally that we were looking for is perfectly on track. The first quarter was very exciting because we had an oversold market bottoming amid bad news and now we have a stock market topping out amidst good news.."
"..What creates a bubble is excess credit being focused on a market and there was so much credit available from 1999 to 2007 that it ballooned markets way passed historical norms and that's what a bubble is. The last time we saw anything that extreme was the South Sea Bubble of 1720.. These are once in a century extremes.."
"I think we are going to have another leg down, not just a correction. I think the bear market is not over. We had the first phase in 2008, we've had a partial recovery, a 52% retracement, by the way that's the same amount the market retraced after the 1929 crash... I think 2010 is going to be a big down year very much like 2008.."
Here is a chart 2 year chart of $SPY (S&P 500 ETF) to look at which includes the 2007 market top, 2009 bottom and massive rally. SPY is close to the 2007 downtrend as well as pre-Lehman and 2008 resistance (115-117 I believe). Chart courtesy of Stockcharts.com. We'll see folks!
Here's a nifty widget of free resources embedded from their website.
Disclosure for FTC: DV is an affiliate for Elliott Wave International, I have followed Bob Prechter's work and am confident in the quality of his products and services.
