φ A Medium-Term and Long-Term US Market Perspective
September 20th 2006
Overview
This market perspective is based on the Elliott Wave Principle and represents
a best estimate of the most probable future market direction. For more information regarding Elliott Wave
Principle please see our Elliott Wave International site review here.
Legend
—
Green Line
Trend
(5 waves)
—
Red Line
Correction
(3 waves)
º º
Green or Red Circle
Possible Wave
Terminus
♦
Green Diamond
Wave Terminus
♦
Red Diamond
Wave Terminus
→ →
Green or Red Arrow
Probable Market
Direction
Monthly Commentary September 20th 2006
As with most things to do with trading, everything looks obvious in hindsight.
The close above 1325 on 9/20/6 indicates we are now in an extended 3rd Wave
of a 5 wave uptrend on the monthly chart. Since there is theoretically unlimited upside potential, and limited downside
(a close below 1290 would indicate Wave 3 was probably finished) we are now long on the monthly chart with
an initial trailing stop at 1290.
Yearly Commentary September 20th 2006
The close above 1325 on 9/20/6 indicates
we are not in Wave 1 of a 5 wave downtrend, but that this is an extended Wave 5 of the uptrend. Since
there is theoretically unlimited upside potential and limited downside risk (a close below 1230 would indicate
that Wave 5 was probably over) we are now long on the yearly chart with an initial trailing stop at 1230.
This market perspective is for your information only. Please get professional
advice before risking money on trading or investing using this information. Note that the S&P 500 is a theoretical
index that cannot be directly traded.
