PMKing Trading LLC
Market Perspective Archive June 9th 2006
φ A Medium-Term and Long-Term US Market Perspective June 9th 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 9th 2006
 
The close below 1255 on 6/9/6 indicates a change in the major trend of the monthly chart to down, and that we are probably in Wave 3 of a 5 wave down trend.  We have added to our short positions from 5/15/6 and 5/17/6 with an initial trailing stop for this new position at 1288.
 
Interim Update June 13th 2006
 
The chart has been changed to show the trend (green) is down and we are in therefore in Wave 3 of a down trend.  We have added to our exiting short positions with an initial trailing stop for this position at 1286.
 

Yearly Commentary June 9th 2006

With the change of trend on the monthly chart to down, this would be a good place to exit any remaining losing long positions on the yearly chart since the risk/reward of this trade is now poor.  We are working on the assumption that Wave 5 of the uptrend that started on 3/12/3 at 804 terminated on 5/8/6.  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 (and would be an excellent place to go short).

Interim Update June 13th 2006

The close of 1223 on 6/13/6 indicates a change in the yeary trend to down and we are now short on the yearly chart with an initial trailing stop at 1325.  The chart has been changed to show the trend (green) is down and we are in therefore in Wave 1 of a down trend.

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.
 
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