Elliott Wave: DJIA: Rally Killer on the Loose?

How sentiment extremes mark trend reversals.
Here's something they don't teach you in Economics 101: Too many bulls can kill a rally.
Conversely, too many bears can stop a bear market. It sounds paradoxical, but it's true: When market sentiment gets to an extreme on either side -- pessimistic or optimistic -- more often than not, the trend is near its reversal.
http://www.elliottwave.com/freeupdates/archives/2010/05/03/DJIA-Rally-Killer-on-the-Loose.aspx






















One Year Later: Is The Bear Really Dead?
The optimistic extreme we've been waiting for has finally arrived
The two columns below compare quotes from news stories in March-April 2009, vs. quotes from today's news:
Spring 2009:
"Dow 5,000? A Bearish Possibility?" (Wall Street Journal)
"The bear market is tightening its grip. No one is taking a back seat approach. Everyone is selling. We're collapsing in on ourselves." (New York Times)
http://www.elliottwave.com/freeupdates/archives/2010/05/03/One-Year-Later-Is-The-Bear-Really-Dead.aspx


Brushed Off the Shoulder -- Then What For Stocks?
See A Pattern That's Part of A Bigger Picture
The markets are like a purebred that no one can train. The S&P 500 won't respond to your whistle. Prices don't go up if you offer a treat. So there's no doubt that markets are uncontrollable. But -- even an untrained dog will follow patterns of behavior.
http://www.elliottwave.com/freeupdates/archives/2010/04/29/Brushed-Off-the-Shoulder----Then-What-For-Stocks.aspx

Does "Big Picture" Mean "Distant Future"?
With Elliott, you can simultaneously track several trends on different time frames.
New Elliott wavers can have the impression that a "big picture" Elliott wave forecast only applies to the distant future and is irrelevant to short-term market action.
http://www.elliottwave.com/freeupdates/archives/2010/04/30/Does--Big-Picture--Mean--Distant-Future-.aspx