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DJIA Top in Play - stock market correction to new lows possible

"The Final Top" for the Stock Market?
Elliott Wave Based Trader Calls Start of Power Wave 3 Down

January 13, 2010 - Here is what my father, a long-time swing trader whom studies the charts and technical indicators like no one else (And also uses Elliott Wave analysis for micro and macro trends, but not to the extent that is all he bases his calls on.), sees happening this week and the coming months in the stock markets. Basically, get ready for the next big down turn, if he is right. (He's been wrong before, especially about my first girl friend!) Here is his message and charts below...

"I might be wrong; but, I see one more tiny little wave up for the very last up wave in the DJ IA (NASDAQ might have already hit the top). A couple more hours on Wednesday (maybe into the close on Thursday) for a tiny new high and that should be it - "The Final Top". The top could be at DJ IA 10,690, but might shoot above it for a couple of hours. Then down for at least 6 months to a year. This should complete Wave 2 (circle) up. Now for Wave 3 (circle) down - "the power wave". There will be a lot of banking, real estate, government, society and corporate bankruptcy issues in this wave to come.

See the attached marked 2 Hour chart. We are now completing small wave v (circle) of "C" of "Z" up which is part of an overall "W" - "X" - "Y" - "X" - "Z" up corrective wave in progress since last March 2009. The waves all overlapped and therefore are not part of an up impulse wave (i.e. a corrective up wave which must end soon)

If I am wrong and the market goes below 10,560 before reaching the new high mentioned above; then the down turn has already begun...

Lets see if I can call it this close.

Click for Larger View...

Gotta love the old-school penciled notes on the printed and then scanned 2-hour DJIA chart. Prechter has already called a market top in his newsletter and he may be right. Anyway you cut it, it is an extremely pivotal point for the S&P 500, NASDAQ and Dow Jones Industrial Average and broader stock markets for sure.

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