Did we reach the bottom yet?

Is it time to buy stock? Ever since mid-September, we have read that the bottom is in because investors have "panicked" and "capitulated." But market history does not support this widespread view.


Here's part of Bob Prechter's explanation from his latest Elliott Wave Theorist:


"Ever since mid-September, we have read that the bottom is in because investors have 'panicked' and 'capitulated.' But market history does not support this widespread view. A perusal of volume data since January 2008 shows that, despite claims to the contrary, investors actually have not panicked. Here's why: In a market panic, the number of shares traded increases substantially on down days and bottom days. In October 1929 and in October 1987, for example, daily volume surged to between triple and quadruple the preceding summer’s average as prices plummeted. In contrast, volume recently has been quite steady, aside from two spikes."