This is pretty much the only viable wave count at this point.

Interestingly, it’s the same one

we’ve been discussing for a few month now! (B)
“y”
c?
-5-
Wave -5- Targets:
a 1247: 61.8% of Wave -1- (b)
1261: 61.8% of Wave -3- (d)
1291: Wave -5- = -1- -3-
(b)
(c) (e)
(a) -4-
-x- -1-

(a) S&P 500 ~ Daily w/RSI

“x”

(c)
-w- -2-

-y-
Sharp RSI Divergence now. This is a
b
necessary ingredient for a reversal.

Andy’s Technical Commentary__________________________________________________________________________________________________

 S&P 500 ~ Weekly with Resistance Zone
The lines below reflect the first two resistance points highlighted on the previous page. These wave
count targets correspond quite well the nexus point of a major market battles in 2008 and is also
nearly the same price level as when Lehman Brothers failed.

Lehman Brothers failed here.

1261

1247

L. Shoulder R. Shoulder

Head

We highlighted the most recent Head and Shoulder

development at the time it was triggered. That target
R. Shoulder
level was 1250. This weekend, Daneric properly points
out the much larget Head and Shoulder pattern off the
March ’09 lows which also targeted the 1250 zone.

L. Shoulder

Head

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)

REPRINTED from 12/5/2010

(e)

(a) (c)

Andy’s Technical Commentary__________________________________________________________________________________________________

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

Despite the fact there is rather serious and important wave count targets just over head, we cannot
get overly bearish this market until it displays some weakness that would give us confirmation of a
“peak.” First level weekly support comes in at 1219.50. I will be putting in “sell-stops” just below
1219 to initiate new shorts on weakness.

Andy’s Technical Commentary__________________________________________________________________________________________________

COPPER ~ Monthly

There’s an old saying in technical circles: “Triple tops and bottoms never hold.” Until the
last 18 months, I was a big believer in this concept. However, we’ve recently seen several
instances of triple and quadruple tops/bottoms “holding” as resistance or support. So, we shall
see what becomes of Copper here. The $4.00 zone has been extremely major resistance this
decade--a solid break of this resistance would look very bullish. One of the things that’s readily
obvious about this chart is that Copper is extremely volatile--these are massive percentage
swings. This is a small market that is vulnerable to severe price/supply dislocations. In other
words, Copper is a commodity in which it’s better to view from the sidelines than participate.

Andy’s Technical Commentary__________________________________________________________________________________________________

COPPER ~ LME Warehouse Stocks

Look how violently Copper stocks can swing around. Needless to say, the steady fall in stocks is the
cause of concern for copper shorts. The metal is being used somewhere….

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

REPRINTED from 12/5/2010

Andy’s Technical Commentary__________________________________________________________________________________________________

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

a
-y-

-b-

-w-

-a-

-c-

-x-

The DXY continues to be a “mixed bag” here. The move off the lows from early November
wasn’t “impulsive,” which is not great news for bulls. The call for the next few weeks is
sideways/lower price action. In the very short term, there does appear to be a small triangle
forming which looks bullish for the beginning of the week; however, the 81.02 resistance should
hold. Notice how the market has struggled into our first level of resistance and 80.31
(highlighted last week).

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
has said about futures trading: Trading commodity futures and
options is not for everyone. IT IS A VOLATILE, COMPLEX AND
RISKY BUSINESS. Before you invest any money in futures or
options contracts, you should consider your financial experience,
goals and financial resources, and know how much you can afford
to lose above and beyond your initial payment to a broker. You
should understand commodity futures and options contracts and
your obligations in entering into those contracts. You should
understand your exposure to risk and other aspects of trading by
thoroughly reviewing the risk disclosure documents your broker is
required to give you.