After calling the market top in late March, Elliott Wave's Robert Prechter told BloombergTV yesterday that the Dow chart looks similar to the 1987 top (*see post with NBR and FNN videos reporting the 1987 stock market crash). We already experienced a stock market crash on May 6 at the head, is a right shoulder crash next? The chart does look vulnerable here with the potential head and shoulders setup. I'll post Dow charts tomorrow on multiple time frames. Prechter is still bearish on the stock market and bullish on the US Dollar (in 100% cash) and thinks deflationary forces will drag down commodity prices, including gold.
He's not a permabear folks, he uses wave patterns on charts and sentiment indicators for directional cues. When the ultimate bear market wave structure is complete (wave c?), he'll report the first wave of the next bull market. I provide Elliott Wave news headlines on my left sidebar now.
See previous blog posts featuring Prechter in the media here. If the clip syndicate video is broken the full video is at Bloomberg.com.