i
i

 


 It¶s possible that the ³b´ wave has already concluded where I have the a-wave marked, but this is
my preferred shorter term model because a ³b´ should have lasted longer. Given this sort of
model, it¶s easy to see how very difficult the ³market call´ is for the next several weeks. For
instance, longer term we seem destined for an Intermediate (C) wave lower that will be quite
 dramatic. However, we must first complete the Intermediate (B) wave which makes it look like
this market will work higher over the next few weeks. In the very short term, though, weakness
next week would not surprise at all as the minor ³b´ might need more time to complete . So, it¶s 
clear as mud«. 



 



 




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There wasn¶t much resolution this week in terms of the shorter term wave count. My primary

count remains that we have a minor ³b´ wave that still must complete before we get another good
 wave higher, the ³c´ of (B). The ³b´ is taking the form of an ³expanded flat.´ There is a possibility
of seeing 1030s before the ³b´ completes.









 





 




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 This alternate count, which seemed bullish last week, actually looks bearish this week.
 This would mean we get a m
  higher high this week and then witness a good
correction, a ³b´ wave lower.

 
 
-5-
-3-

 
 -1-

  -4-

-2-








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S&P bulls must keep the futures above 1083 this week. A break of that level should trigger
a more pronounced decline--perhaps as low as 1036. 1130 still looks like a big hurdle«

›
m
m m 
m 


 
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 e
88.71

â
REPRINTED from 7/25/2010
i 

 
i 




a d

f?
c

e
g

(B)

†nder this proposed count, which is a diametric, the g-wave should not exceed the
length of the e-wave, which means we shouldn¶t see price action below 81.00. When
this (B) wave concludes, we should see a powerful move higher in the DXY.

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e
88.71 The target of the Head and Shoulders pattern has
now been achieved perfectly and there seems to
be a completed formation present. If this is
â correct, then we should be witnessing ³bottoming
i 

action´ this week. DXY bulls must first break the
  steep down trend line that is in place.
i 




a d

c f

e
g

(B)

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The DXY is right at the exact 50% retracement of the entire advance. It seems
safe to assume there will be some buying interest around this zone.

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kind. This report is technical commentary only. The author is NOT 
 
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