Video (Part 2): Prechter: Ominous Pattern in the DJIA

(Note: This interview was originally recorded on September 20, 2010)

In the video below, Robert Prechter talks to Yahoo! Finance Tech Ticker host Aaron Task and Henry Blodget about a technical pattern he sees forming in the Dow.

Get Up to Speed on Robert Prechter's Latest Perspective — Download this Special FREE Report Now.

Video (Part 1): Prechter On Market Rally

(Note: This interview was originally recorded on September 20, 2010)

In the video below, Robert Prechter talks to Yahoo! Finance Tech Ticker host Aaron Task and Henry Blodget about extreme readings in various indicators that confirm his bear-market forecast.

Get Up to Speed on Robert Prechter's Latest Perspective — Download this Special FREE Report Now.

S&P500: Make or Break time!

In March this year, i suggested "Sell in May and go away", based on a 15-year SPX chart. In May, the SPX peaked at 1220 right on the dot as shown on this chart. Now, it's make-or-break time for the S&P500. It is up against downtrendline resistance joining the Oct07-May10 tops, and overbought. Just above is the long-term trendline(red) that stopped the SPX dead in its tracks in May. Which way is it gonna go?

The answer may lie in this daily chart below. SPX is currently also up against the blue upper channel line.

Considering seasonality, chances are it will turn here. But if it does zoom up above those trendlines, the correction may have ended at point A, and we may be reckoning with a wave 3 up here with a test of the highs looming.

Look for a impulsive decline below 1130, or a continued surge above the downtrendlines.

All the best!

Funda-MENTALs for the Short-Term?!

The futility of buying or selling stocks in the short-term, on fundamental news/data, was laid bare by today's Shanghai market action!

THE NEWS:

"China Government Moves to Curb Lending
China has tightened limits on mortgage lending and plans to roll out a new tax on home sales, acting once again to cool a property market that some fear is frothing into a bubble. The required downpayment for a first home purchases rises to 30 percent, up from 20 percent, while purchases of second homes will require a 50 percent downpayment, up from 40 percent. Loans for purchases of third homes are banned, said the announcement on the government's website."

MARKET REACTION:

 Up 1.72%!

And just a few weeks ago, this same market would've dived on such news.

China market will be closed for the whole next week, as the population there does its' yearly mass migration. Traders might wanna sit out, and wait for a break above 2700 before going long.

All the best!

(Video) Nifty: Expect New Highs by Year End.

In May, i posted this video interview of Mark Galasiewski , who is the editor of Asia Pacific Financial Forecast, at Elliott Wave International. He had then called for Nifty 6000. And now with Nifty springing above that level, here's another of his interviews with ET:

Mark Galasiewski Interview, Sept 23

Enjoy!