The SP Vibrating at Critical Mass

By: Joseph Russo | Fri, Jul 20, 2007
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Nearly a year ago, back in September of 2006, we shared a keen and timely awareness as The Dow Approached Critical Mass. Save for the miserable comparative retracement performance from the tech-sector off the 2002 lows, numerous equity indices have since broken decisively to the upside above their previous historic highs. The S&P is one of the last to arrive.

As we pen this market update, the S&P has yet to close above 1553.11. Perhaps it will do so by today - perhaps not.

We suspect the recent surge in out-performance by the NASDAQ (leadership?) might simply be a matter of funds chasing after the most undervalued laggards relative to the levels of advance achieved in most other major indices.

For longer-term investors, position traders, and the most astute Elliott Wave connoisseurs, we have laid out specific forecasts and price targets for the Intermediate, Primary, Cycle, Super-Cycle, and GRAND SUPER CYCLE Degrees of trend in force from 1696!

Yes, we have acquired and exhaustively analyzed data spliced to the Dow from the British All-Shares Index 1693-1853. Thereafter, we spliced the Clement Burgess Index from 1854-1895! From 1896 forward, we follow the Dow Jones Industrials in its present form.

To our knowledge, no charting service presents a more robust, organized, and accurate historical accounting of the wave structures at the largest degree of trend than Elliott Wave Technology. With proven mastery over such large-scale time horizons, it stands to reason that we are equally adept at calling the short-moves in the market with similar levels of skill, patience, and accuracy.

For active index traders, we continue to identify and capture - with near-perfection - virtually all of the swings, trade-triggers, and short-term price targets in our Near Term Outlook publication.

To get a grip (and keep it) on where the major markets are heading in both the long and short-term, there is simply no better venue than Elliott Wave Technology.

That said - let's take a look at where the weekly charts are trading...





The Dollar is at its own level of critical mass, which vibrates about the 80.39-80.14 levels. Should these levels soon become "price-ceilings," hold on to your hats! The Dow has broken out of its recent range with a "summer-rally" resolution following the well telegraphed, "June Swoon." Who knew?


S&P 500

As we anticipated, Gold broke to the upside side quite nicely from a nest of falling wedges, and is now approaching a key eight-week resistance level just under 680. Like the Dow, the S&P has also broken to the upside, now vibrating at its critical- mass closing resistance of 1553.11. Until next time ...

Trade Better / Invest Smarter...



Joseph Russo

Author: Joseph Russo

Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Joseph Russo

Since the bubble, 911, and the 2002 market crash, Elliott Wave Technology's mission remains the delivery of valuable solutions-based services that empower clients to execute successful trading and investment decisions in all market environments.

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating their exposure to the financial markets.

Since the official launch of his Elliott Wave Technology website in 2005, he has established an outstanding record of accomplishment, including but not limited to, ...

  • In 2005, he elicited a major long-term wealth producing nugget of guidance in suggesting strongly that members give serious consideration to apportioning 10%-20% of their net worth toward the physical acquisition of Gold (@ $400.) and Silver (@ $6.00).

  • In 2006, the (MTA) Market Technicians Association featured his article "Scaling Perceptions amid the Global Equity Boom" in their industry newsletter, "Technically Speaking."

  • On May 6 of 2007, five months prior to the market top in 2007, though still bullish at that time, he publicly warned long-term investors not to be fooled again, in "Bullish Like There's No Tomorrow."

  • On March 10 of 2008, with another 48% of downside remaining to the bottom of the great bear market of 2008-2009, in "V-for Vendetta," using the Wilshire 5000 as proxy, he publicly laid out the case for the depth and amplitude of the unfolding bear market, which marked terminal to a rather nice long-run in equity values.

  • Working extensively with EasyLanguage® programmer George Pruitt in 2010 and 2011, the author of "Building Winning Trading Systems with TradeStation," he assisted in the development of several proprietary trading systems.

  • On February 11, 2011, he publicly made available his call for a key bottom in the long bond at 117 '3/32. Within a year and half from his call, the long bond rallied in excess of 30% to new all time highs in July of 2012.

  • For the benefit of members and his general readership, he responded to widespread levels of economic and financial uncertainty in the development of Prudent Measures in 2012.

  • He publicly warned of a major top in Apple on October 26, 2012 in the very early stages of a 40% decline from its all time high.

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