The stock-market drop that began in 2007 hasn’t yet run its course, despite the fact that the Standard & Poor’s 500 Index has rebounded 88 percent from its March 2009 low, says stock guru Robert Prechter.

The founder of Elliott Wave International compares the current environment to the 1929-33 period. Back then, the nation’s biggest commercial banks sought to stop the stock market’s drop.

“They failed, and it ultimately went down very hard," Prechter tells Yahoo. Similarly in 2007-09, central banks sought to stem the stock plunge. “That didn’t stop the market from going down 50 percent-plus,” he says.
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From its October 2007 peak to its March 2009 trough, the S&P 500 dropped 58 percent.

“As we’ve seen in the last five years, they [central banks] have failed to keep things afloat, because all they have to offer is credit,” he says.

(Getty Images photo)

So the outlook now is negative for stocks, Prechter maintains.

“All the technical indicators agree, whether I’m looking at patterns, sentiment indicators, or momentum indicators,” he says. “This is a bear-market rally, and the bear market isn’t over. There’s another wave coming, so you want to be cautious.”

With the S&P 500 up 17 percent since Oct. 4, many investors don’t share Prechter’s bearishness.

Billionaire Ken Fisher is one of them. "I've been net neutral on the market this year, and I believe 2012 will be a very much nicer year," he says, according to Reuters.