Robert Prechter Interviewed by Curt Renz on 14/6/11: — ‘Prices have a long way to go, they’ve probably exhausted their upside potential’
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:
- The current position of the Dow Jones is similar to May 2008. In May 2008, the Dow had broken below a long-term trend line (touching in 1982, 2002 & 2003) and was retesting it. Today, the Dow is below & retesting an even longer trend line (touching in 1942).
- The move from the March 2009 low has been a classic ‘A-B-C’ corrective wave up.
- There are no lines of resistance below where we are now. We’re in ‘Free Fall Territory’.
- Stocks & Commodities have been trading together for 10+ years. This could be bad for both.
- Bullish sentiment is extended on all 6 measures used by Elliott Wave International.
- Cash, T-bills & Swiss Money Market Claims are where one should be. A decent buying opportunity is probably several years away.
Recommended: Charting the Federal Reserve's Assets - 1915 to 2012