July 6, 2010 Prechter Calls for Dow 1,000The New York Times recently profiled Robert Prechter and his call for the Dow to fall to 1,000.
If you're not familiar with Mr. Prechter, he's a follower of an obscure accountant named RN Elliott who claimed to have discovered that the stock market follows a predictable pattern which is somehow (don't ask me) related to the Fibonacci Sequence.
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Comments:

"Wave theory is related to fib relative to the price movement and the wave formation. few understand how to use fib analysis. fib analysis determines price ranges, wave theory helps confirm the price ranges and determine a reference point via it's cycle identification, formation, and wave count.

fib analysis requires using more than just the top and bottom of price points. instead it requires determining multiple ranges and looking for the area of confluence. confluence areas are the hidden areas of the market we are looking for. By knowing these areas coupled with wave theory, trading strategy, tactics, and risk can be ultimately managed and re-acted upon. "