φ A Medium-Term and Long-Term US Market Perspective
June 1st 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 June 1st 2006
We are now working on the assumption that Wave A of the correction started
on 5/8/6 at 1324 and finished at 1256 on 5/23/6.
Therefore we are still in our short positions from 5/15/6 and 5/17/6. Current Wave
B terminus estimate is a close above 1283 between 6/5/6 and 6/19/6 so this
is where our current stop is. A close below 1255 would signal a change in the main trend on the monthly
chart to down (and would mean we are actually in Wave 3 of a 5 wave trend, rather than Wave C
of a 3 wave correction).
Yearly Commentary June 1st 2006
On the yearly chart we are still long on 5/8/6 with
a price target of 1388 and an initial trailing stop at 1233. A close below 1233
would indicate a change of the main trend on the yearly chart to down and would indicate we were in Wave
1 of a 5 wave down trend rather than Wave A of a 3 wave correction.
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.
