S&P 500 ~ Daily w/RSI One of the struggles has been determining where Minute b-wave (B)

concluded. Last week, we showed the case where b-wave

concluded at 1040 in a triangle. The next two slides will lay out
the wave count trajectory using both of those b-wave conclusions. “y”
a c?
1220

“x”
Whatever the count is, the next new high
on the S&P 500 will trigger some very
1040 clear and sharp RSI Divergence.
b
1011
b

Andy’s Technical Commentary__________________________________________________________________________________________________

 S&P 500 ~ Daily Bullish Count (B)
“y”
c
This is the general wave count we had been discussing and thinking -5-
about for several weeks now. This model calls for several more weeks
of price action higher/sideways that should get the S&P 500 to 1265.
That target comes from the idea that fifth waves in a “Terminal” should (b)*
be 62% of third waves, when the third is the extended wave, as was the
case here.

(d)

-3-

(c) (e)
-4-
(a)

-1-

* A b-wave in a triangle cannot exceed 261.8% of the a-wave.

This (b) wave comes in just short of that figure.

-2-

1011
b

Andy’s Technical Commentary__________________________________________________________________________________________________

 S&P 500 ~ Daily Bearish Terminal Count (B)
This would be the wave count for a “Terminal” c-wave pattern off the “y”
1040 lows. In this pattern, the various waves break down into c
“corrective” legs which is what it looks like. Under this model, there isn’t -3- -5-
much more room for Wave -5-, which CANNOT exceed 1240, otherwise (c)
it will be larger than Wave -3- (impossible).

(a)
(x)
(b)
-4-
-1-
(y) (y)
-2-

(w)

(w)

(x)

1040
b

Andy’s Technical Commentary__________________________________________________________________________________________________

 S&P 500 ~ 60 min: Weekly Support and Resistance

The market remained comfortably within our first levels of support and resistance during the
holiday shortened week. Presented here are updated (and relatively tight)
support/resistance points for the week ahead. The action over the last several days is taking
the shape of a bearish triangle/congestion. I want to add to my core short position (currently
40% of a Max short) but will use 1199 and 1207 as my stop losses on the new shorts.

[.2]
REPRINTED from 11/28/2010
[.4]

[.1]

[.3]

The move down from the high is NOT a five

wave impulse lower, but there is an
“impulse” present within the progression.
Perhaps the previous wave ended a little
later? It’s still too earlier to tell what might
be happening here, but this picture looks
short term bearish.

[.5]

Andy’s Technical Commentary__________________________________________________________________________________________________

 Last week’s resistance levels become this week’s support. We were stopped out of all fresh shorts last week, which is
why “stop loss” strategies are the most important aspects of trading! This was a very explosive move out of what
appears to have been a triangle development from the 1227 high. The medium/longer term technical picture remains
bearish, but it makes no sense to initiate any new shorts until this market shows some sort of “peaking action.” For
instance, if it were to “breakout” above 1227, drawing in new length, and then reversed back below 1227, creating a “bear
trap,” then that would be peaking action. Until then, the best posture is to be on the sidelines.

S&P 500 ~ 60 min: Weekly Support and Resistance

(b)

(d)

(e)

(a) (c)

Andy’s Technical Commentary__________________________________________________________________________________________________

Gold 180 min. (Dec Futures) with Weekly Support and Resistance Levels

Head?

REPRINTED from 11/28/2010

Left Right
Shoulder? Shoulder?

The Gold market did a good job of carving out a possible right shoulder last week. This picture
looks short/medium term bearish as the bounce we’re witnessing looks very much “corrective” in
nature. $1,388 seems like a nice level of resistance for new shorts to consider as a “stop”--it
lines up with the proposed left shoulder and is also the 61.8% retracement of the down move. A
break of the blue dashed line would look very bearish.

Andy’s Technical Commentary__________________________________________________________________________________________________

Gold 180 min. (Dec Futures) with Weekly Support and Resistance Levels
The yellow metal blew out short-sellers once again last week. Thoughts of a bearish Head and Shoulder top are now on the
back-burner. If there is an H&S forming, it might a “double headed” one. Similar to the S&P suggestion, there is no point in
initiating any fresh shorts here until it “shows us something.” This is a very frothy and over-extended market, but they can stay
that way longer then you think. 1417.50-1424 is a fairly tight zone of resistance just above. 1399 and 1383 look like very clear
levels of support that might guide “stop-loss” strategies for those with gold length.

Andy’s Technical Commentary__________________________________________________________________________________________________

DXY 180 min. (Dec Futures) with Weekly Support and Resistance Levels
Here’s the reason for the “risk on” trading. The DXY broke down below trend support and looks destined to probe the 78-76.71 zone.
This is not a good picture for DXY bulls, with the move off the lows looking more corrective than anything else--and, not the
beginning of some kind of stronger move higher.
y

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 Wave Symbology
NOT representing himself as a CTA or CFA or Investment/Trading
Advisor of any kind. This merely reflects the author’s "I" or "A" = Grand Supercycle
interpretation of technical analysis. The author may or may not I  or A  = Supercycle
trade in the markets discussed. The author may hold positions <I>or <A> = Cycle
opposite of what may by inferred by this report. The information -I- or -A- = Primary
contained in this commentary is taken from sources the author (I) or (A) = Intermediate
believes to be reliable, but it is not guaranteed by the author as to "1“ or "a" = Minor
the accuracy or completeness thereof and is sent to you for 1  or a  = Minute
information purposes only. Commodity trading involves risk and -1- or -a- = Minuette
is not for everyone. (1) or (a) = Sub-minuette
[1] or [a] = Micro
Here is what the Commodity Futures Trading Commission (CFTC) [.1] or [.a] = Sub-Micro
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