(Z) S&P 500 (60 min.) - A completed Triple Zig-Zag?

“c”
1050

The anticipated bounce rallied right into our first level of resistance hitting 1104.7 today. It would
[b] be a very classy setup to now get a pullback to 1180’s and then another rally up to 1129. In fact,
it would be a textbook type move. So, if this market behaves in a way similar to the last year, this
will probably become something much more difficult, complex and unpredictable (ha!). Bulls are
in short term control now with 1087 becoming a decent support (short term) point.

1129.25
[a]

(x)
[c]
(w) (a)?
[b] [b]
(x) 1103/1105
[c]

[b]

[a]

[a]
[a] 1087

1083 [b] (b)

[c] [b]
(y)
[a]

1071.6
[c] of (z)

Andy’s Technical Commentary__________________________________________________________________________________________________

 S&P 500 (60 min.) - A completed Triple Zig-Zag?
(Z)
“c”
1050 The sharp move up from 1071 followed by sideways consolidation is suggestive of more upside in
the very near term as the this current wave seems to have run out of some steam. The overall
move down resembles a triple zig-zag, though there are other counts (see next page). A “triple”
[b] would mean a 60-80% retracement that would bring the 1129.25 level into play. In the near term,
though, 1103/1105 remains a critical resistance area and I would expect some selling pressure
into that zone.

1129.25
[a]

(x)
[c]
(w)
[b] (x)
1103/1105
[c]

[b]
[a]
[a]
[a]
1083 [b]
[c] [b]
(y)
[a]
Reprinted from 2/2/2010
1071.6
[c]
(z)

Andy’s Technical Commentary__________________________________________________________________________________________________

 Gold Futures ~ Feb (Daily)

Gold has decisively taken out our first level of resistance at $1,104 and is now vigorously testing our next
level at $1,119. The candlesticks and wave structure (next page) off the lows are impressive looking for
sure. The latest Commitment of Traders showed a decent amount of long liquidation in the yellow metal,
so some sort of bounce shouldn’t surprise. This three day hop looks like the beginning of a bigger or more
prolonged bear market rally. My guess is it becomes a “five wave” impulsive c-wave, but a large triangle
from the “a” wave conclusion wouldn’t be shocking. I would be neutral on Gold right here with a bias to buy
the next dip as a short term trading opportunity.

-1-?

1119

-2-?

“a” b

Andy’s Technical Commentary__________________________________________________________________________________________________

 Gold Futures ~ Feb (60 min.) -1-
(5)?
1124.9

(3)?

(1)? [4?]

(2)?

This is an impressive looking wave off the lows. It has the “look” of a completed five
wave advance. In this position, and with this duration, there’s a high probability this is
only the first leg up of a larger advance. If this is the first wave up, then 1095 should not
be violated while 1100 would present a decent buying opportunity. Gold bulls would
love to see a choppy and shallow correction down from 1124.9

alt:b

Andy’s Technical Commentary__________________________________________________________________________________________________

 Gold Futures ~ Feb (Daily)
Not much has changed with Gold since the last look on 1/22/10. This market does not look
“healthy” longer term. The best case for gold bulls is that the market might be at the lower end
of a congestion zone of some kind, and there might be some kind of “last gasp” rally back to
the 1150’s. Other than that, this is a picture of a market that “has fallen and can’t get back up.”
1104 and 1119 look like first and second levels of resistance for this week. Breaks of those
levels should cause short term Gold bears some anxiety.

“x”

1119

1104

b
“w”

Reprinted from 2/1/2010

Andy’s Technical Commentary__________________________________________________________________________________________________

 DISCLAIMER WARNING DISCLAIMER WARNING DISCLAIMER

This report should not be interpreted as investment advice of any kind. This report is technical
commentary only. The author is NOT representing himself as a CTA or CFA or Investment/Trading
Advisor of any kind. This merely reflects the author’s interpretation of technical analysis. The
author may or may not trade in the markets discussed. The author may hold positions opposite of
what may by inferred by this report. The information contained in this commentary is taken from
sources the author believes to be reliable, but it is not guaranteed by the author as to the accuracy
or completeness thereof and is sent to you for information purposes only. Commodity trading
involves risk and is not for everyone.

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