The "Prechter Point" is the juncture of "maximum acceleration" in the Elliott wave structure of a market's trend.
Prices reach these points in bullish and bearish trends alike.
EWI's Robert Prechter wrote of such "points" in the February 2011 Elliott Wave Theorist:
"Keeping hourly charts by hand back in the 1970s was helpful in revealing the character of the center of an impulse wave. I introduced observations on the “wave 3-of-3” point of maximum acceleration in Elliott Wave Principle in 1978. Since it’s my baby, I like to call it the Prechter Point. Four such points within waves of Primary degree have occurred during my career, three on the upside and one on the downside. In three of those cases, I knew exactly where the market was in its development. The rising instances took place in 1976, 1986 and 1996, and the declining one occurred in 2008. These were the points of maximum upside acceleration for waves 1, 3 and 5 and maximum downside acceleration for wave 1 of c."
This chart shows a bullish "Prechter Point" in 1976:
Notice how the chart shows mutual funds investors at then-record levels of bearishness before the 1976 upward acceleration.
Today, in contrast, mutual fund managers have recently been holding record low cash levels (indicating bullishness).
Most investors are typically on the wrong side of major trend changes in the market.
How about the trend now? Are we near the "most volatile point," or is even greater volatility ahead?
It's time to discover what our Elliott wave analysis reveals about today's stock market -- and how other technical indicators are confirming our wave analysis.