After a fairly long quiet period, Bob Prechter was interviewed by Curt Renz on June 14th. He remains extremely cautious, and continues to believe that the long-term trends in ‘risk assets’ are bearish. He had some interesting things to say about the current position of US equities from a technical perspective. The video & summary are below:

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Markets have a tendency to move in generational cycles, so — with amusing irony — each generation has the opportunity to repeat the follies of their fathers and grandfathers before them. One of the greatest possible follies recently gripped the world; the passion for the production of credit. Since the bubble in credit production (and so banking stocks) peaked out in 2007, the mood of the market has gone through several of the stages of grief. We’ve denied the subsequent fall from greatness; we’ve got angry about it; we’ve even got depressed, irritated and frustrated by it; however we are yet to become apathetic towards it. This last stage requires the passage of a long period of time. Indeed, it requires an environment where the business of banking becomes … well … boring.

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