S&P 500 ~ Daily non-Log Scale REPRINTED from 2/13/2011

(B)
“y”
The pattern up from the 1040 has now become very difficult to determine. We’ve been pointing out
the lack of clear “impulsions” higher, which means we’re dealing with some sort of corrective g?
pattern higher. I’m suggesting a “diametric” labelling here, but there is little conviction in this
counting. e

c f
b

“w” a
d
d
b

a
1040
e
c
“x”

If this happens to be the correct larger degree counting, the “x” wave corrected exactly
23.6% of the “w” wave. One possible target for the “y” wave would be 61.8% of “w” at 1339.
That level would also be 38.2% of “w” measure up from the top of “w.” So, we will stand
back and observe how the market behaves into 1339….

(A)

Andy’s Technical Commentary__________________________________________________________________________________________________

 S&P 500: Weekly (Log Scale)

( B )? ( B )?
“y” peaks @ 61.8% of “w” ?? “y”? “z”?

b
“w”
“w” concludes @ 1150 e d
“x”
c

“x” corrects 23.6% of “w”

a e
d
c “x”
a

b
Following up from our count on 2/13/2011, this would be an updated longer term look at the price
action. The “w” up is better counted as some sort of contracting triangle pattern with an abnormally
strong upward slope and of an unusual character.* The subsequent “x” wave corrected exactly
23.6% of “w.” The “y” wave which has followed has peaked around 61.8% of “w.” Based on the
slower moving, and corrective nature, of the move from the recent high, another “x” wave lower is
the highest probability. I’m expecting at least a 38.2% of the “y” wave--1227 or lower with the “x”
wave lasting a few months.

(A)
* The c and e-waves should not be bigger than the preceding waves in a contracting
triangle. Who knows? We might be dealing with a “new shape” here.” That’s an idea we’ve
been discussing for a year now.

Andy’s Technical Commentary__________________________________________________________________________________________________

 S&P 500: Daily with Fibonacci Retracements

“y”?

Notice the way the 23.6% and 38.2% aligned so well with previous resistance
points. This market almost looks destined to revisit 1272 and then 1227 at some
point. I wouldn’t attempt to buy this market “for a bounce” until 1227.

“x”

Andy’s Technical Commentary__________________________________________________________________________________________________

 S&P 500: Weekly Support and Resistance
REPRINTED from 3/6/2011

(b)
[a] [c]

[1]?

[b]

(a)
The market did not give us a lot of clarity from last week’s commentary in terms of waves structure. The
labelling above is a “guess” at what might be going on. The nice thing going on here is that Mr. Market will
give us some “answers” early in the week and support and resistance is well defined. 1325 is the 62%
retrace of Friday’s move down. If the count above is correct, then the Market should NOT trade above 1325.
1302 looks like decent support for any “bulls/longs” Below, 1302, I don’t see much support until 1275.

Andy’s Technical Commentary__________________________________________________________________________________________________

 S&P 500 (120 min.) w/ Weekly Support and Resistance
Last week, the market failed miserably into our 1325 resistance, opening at 1327 and then tumbling. The (b) wave looks a lot like
a triangle. If that’s the case, one would expect the subsequent (c) wave to last a little longer than the 1292 low.

[c]
[a]

(b)
[e]

[2]?

[d]
[b]

(a)
[1]?

So, while it’s “possible,” that the (c) wave concluded at 1292, we favor more price action lower
this week. New shorts/bears should use 1312 for “stop loss” levels on this theory. Second level
of resistance would be 1322, the point at which the possible triangle concluded. The (a)=(c)
target would be down at 1272, thus, it’s our major support for the week.

Andy’s Technical Commentary__________________________________________________________________________________________________

 May 2011 Silver Futures - 60 min chart: Flags and Pennants

REPRINTED from 3/13/2011

Last week it was pointed out that the short term picture was not “bearish.” Indeed, Silver
busted out of what was a decent sized flag pattern to set a new high. At the end of the week, it
congested in another smaller sized flag/pennant pattern and then busted out of that one. The
targets for the various flags/pennants is the $37-$38/oz range. The 60 min. RSI hit a fresh
high--if one looks back at the other fresh “overbought” signals, it was bullish. Silver bulls
should consider $34/oz for “stop loss levels” on length.

New RSI High

Andy’s Technical Commentary__________________________________________________________________________________________________

 May 2011 Silver Futures - 120 min chart
Wonder if we get a Head
Last week’s message on Silver was that there was upside to the $37-38/oz range and that $34 and Shoulder top here?
should be considered support for “stop loss strategies.” Silver peaked at $36.75 before falling
to $34.05. So, support was NOT broken. The result is what we have here: A nice up trend
channel on the 120 min. chart. This lower trendline appears to be very important along with
last week’s low of $34.05. Silver bulls remain in control until that lower trend breaks or
$34.05 gets taken out. A break of $34.05 should send bulls
to the exits.

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
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opposite of what may by inferred by this report. The information -I- or -A- = Primary
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