18/05/2010 – What Becomes of a Broken Stock Market?

You know what a mystery the Dow’s 1,000-point drop on May 6
has been.
Wall Street is looking for a smoking gun — a trader’s mistake, a computer
glitch — but nothing definite has been found yet.
If you’re familiar with Elliott wave analysis, last week’s shocking decline gets
less mysterious. The chart you see below is from Robert Prechter’s latest, May Elliott
Wave Theorist. Notice the price area where the drop occurred.

This article was syndicated by Elliott Wave International. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts lead by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

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