Robert Prechter's Elliott Wave Theorist is a monthly publication. On occasion, breaking market developments will warrant an Interim Report before the next monthly Theorist publishes.
What is rare, however, is for Prechter to add new charts and commentary to the Theorist soon after the monthly issue has already "gone to press." Yet that's what happened with the recently published February issue.
Why did he do so within hours of posting the issue?
Answer: he saw a highly relevant price juncture in the stock market's long-term chart pattern, approaching now.
The market analysis in this new section should give pause to investors who have been swept up by the recent market rally. In another section of the issue, Prechter offers this comment:
"The speed of the [market's] advance has convinced many people that it is analogous to the bull market liftoffs of 1932-33 or 1942-43. But back then, dividend yields were sky high and P/Es were low."
In turn he provides an example which is more analogous to recent market action, and says that today's market is in "a larger version" of that earlier time.
This important added section consists of six paragraphs and two charts. One of those charts covers the entire page width and almost half the page vertically: It shows a Supercycle-degree resistance line that spans some 80 years.
These new charts and commentary tell a market story which does a lot more than answer dinner party questions such as, "What do you think the market will do next week?"