Stock markets closed lower after rallying for most of the day. It might have been predictable that the market would grow weak at the end of the day as robust rallies continued to fade throughout the day. Markets moved into negative territory after Elliot Wave guru, Robert Prector, predicted that this is our last chance to sell with the Dow above 10,000. Bear Market & Beyond
Analysts with bullish views countered that China's rapid growth and recent moves to slow it prove that the market has further to run. But having rallied virtually straight up since March, Prector stresses that the indicators he follows show that we are in a position similar to recent market tops and that the next leg down may be dramatic.
Although the stock markets overall are down only slightly this year, it hasn't been a pretty sight for metals and other basic material stocks that rallied hard last year. In just the past two weeks, we have seen dramatic moves to the downside in many stocks. It certainly does look as if the liquidation has begun.