Prechter sent out an interim bulletin yesterday warning the faithful that the market may NOT be about to drop as he has been predicting; then the market took a tumble today. He seems to have been too impulsive with this interim bulletin. Maybe he had many of his followers deep in short positions and was getting overly anxious about all of them being squeezed, as has happened several times in the last 18 months. Today's drop came with crumbling technical indicators, and is close to signaling the beginning of a wave iii down - meaning a serious and rapid drop for several weeks, perhaps below Dow9K. The Dow is about 100 points above a key level, Dow10250, a break of which would signal a clear change in the trend towards the wave iii down. Watch for that to confirm more trouble ahead.
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