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Max Mckegg: Email Tel. 64-4-479-0983
Max Mckegg: Email Tel. 64-4-479-0983
Since my Update of September last year (refer below), already the S+P 500 has reached the first mathematical
resistance of any real significance and “survived” nothing more than an abrupt reaction. This suggests that the
market is headed for a deeper retest of its 1576 October 2007 all-time high, over coming months.
A likely path ahead is for the next significant peak (finding resistance about 1361/1378) to give-way to a period
of multi-week corrective consolidation, with this serving to dampen the enthusiasm of the Bulls and to embolden
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the Bears, all the while laying the foundations for a final leg of this Bull market and a climactic 5 Wave advance.
Although Wave-C will equal Wave-A at 1564 (just below the all-time peak of 1576) the S+P 500 may not quite
make it this high (the low 1500’s should be respected) and a watchful eye will need to be kept on both the Dow
and the Nasdaq to anticipate a turn.
With the US Stockmarket being a good barometer of the global “Risk On-Risk Off” dynamic which affects so
many markets (including the Currencies ofcourse) it is interesting to see what may lie ahead:
The background “news” regarding the US Economy has been fairly bleak lately. However, the Stockmarket
is perhaps telling us a different message. It is interesting to note a similarity between the Daily Stockmarket
price action of the periods July 2002 - March 2003 and that of May 2010 through to today (refer below).
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A completion of the current potential Inverse Head & Shoulders pattern would “fit” well with my interpretation
of the Elliott Wave structure of the S+P 500 (refer above); wherein if Wave-C were to equal Wave-A (being
the most typical inter-wave relationship) then an advance toward the 1564 level would be heralded (just short
of the all-time 1576 high of October 2007 and strong resistance). Wave-A lasted some 14 months & a similar
time duration would “red-letter” the period of late August/early September of next year.
Disclaimer: Max McKegg & Technical Research Ltd accept no liability whatsoever for any loss or damage that may result,
directly or indirectly from any forecast, comment or opinion information or omission whether negligent or otherwise, within
these forecasts.