THE S&P VIBRATING AT CRITICAL MASS
by Joseph Russo
ElliottWaveTechnology.com
July 20, 2007

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 wbroken decisively to the upside above their previous historic highs. The S&P is one of the last to arrive.

The mother of all benchmarks is on the hot-seat

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�

markets at a glance INDEX TRADERS EDGE Vol. 7

U.S DOLLAR DOW JONES INDUSTRIALS

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?

GOLD and 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 �

© 2007 Joseph Russo
Editorial Archive

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Joseph Russo
Chief Editor & Technical Analyst
Mission Viejo, CA USA
www.elliottwavetechnology.com
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