Bob Prechter appeared on CNBC a few days ago and discussed seeing a market top similar to the one in 2007. Take a look at the video:
While I believe that the Elliott Wave Theory has merit, it is not a very good timing indicator. Some of Bob’s previous forecasts based on his E-wave analysis have been correct, but were made way early. Given what has happened in the market in 2008, an early exit certainly was better than a late one or none at all.
With the S&P; now having retraced recent gains back to the November level, a trend reversal is a distinct possibility. So far, only sell stops in Asian, Chinese and international ETFs/mutual funds have been triggered, but many more will follow if the markets give back another 2%.
Don’t make any emotional decisions; simply let the market tell you when it’s time to get out.