In February 2009, Robert Prechter of Elliott Wave International predicted a market rally that would be “sharp and scary for anyone who is short.”

In recent months, Prechter returned to more familiar territory, declaring here in November the market was in a “topping area.”

A few weeks ago, the veteran market watcher told the Society of Technical Analysts in London that a “grand, super-cycle top” is at hand, The WSJ reported.

“What has happened is a complete change in psychology from extreme negativity [a year ago] to extreme optimism” heading into the market’s recent top in January, Prechter says.

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