PMKing Trading LLC
Market Perspective Archive May 5th 2006
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φ A Medium-Term and Long-Term US Market Perspective May 5th 2006


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.


Green Line
(5 waves)
Red Line
(3 waves)
Green or Red Circle
Possible Wave
Green Diamond
Wave Terminus
Red Diamond
Wave Terminus
Green or Red Arrow
Probable Market

Monthly Commentary May 5th 2006
The close above 1315 (at 1325 on 5/5/6) invalidated our working assumption that Wave 5 of the uptrend that started at 1179 around the end of October 2005 terminated on 4/5/6 at 1311 so we were stopped out of our short position.  Since our estimate for the Wave 5 terminus is currently 1329 a long trade right now would be a poor reward:risk (since our stop would be at 1285), therefore we are not taking a position on the short-term direction.  A close below 1285 would indicate an excellent place to go short.

Yearly Commentary May 5th 2006

On the yearly chart our assumption that the estimated terminus of Wave 5 of the uptrend on the Monthly chart is also the terminus of the Wave 5 uptrend on the yearly chart is now invalidated due to a close on the monthly chart above 1315 (on 5/5/6).  We are long on 5/8/6 with a price target of 1388 and an initial trailing stop at 1233.

This market perspective is for your information only.  Please get professional advice before risking money on trading or investing using this information.
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