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June 6th, 2011: Update 1 – EOD

Posted by pugsma on June 6, 2011

11:55 pm EST:  Take a look at the weekly chart on Dr Copper and notice how Dr Copper continues to “lead” the SP-500 by serveral weeks to a month at all of the key Primary Wave turning points (i.e. tops and bottoms).

Dr Copper Weekly Chart (EOD):

6:00 pm EST:    Both the primary (white) and alternate (blue) are now calling this significant correction since the May 2nd high of 1371 a Primary Wave 4 (P4) event.  It’s very clear now (in hind-sight) that once the 9 month long Primary Wave 3 (P3) channel was broken to the downside back on May 23rd, that the P3 wave had ended and P4 had begun from 1371.  It’s now simply a matter as to whether major [C]-P4 will end at [C]=[A]=>1286 or [C]=1.62*[A]=>1249.  There is a head and shoulders that measures to 1253 and the Wave 4 of previous degree (i.e. major [4]-P3) is at 1249.  Thus, the primary count calls for a continued P4 to drop towards the 1245 to 1257 pivot area over the next week.

Primary count (white) is in wave iii-(3) of minor 3-[C]-P4 with a wave iii-(3) target of 1266 and a minor 3 target of 1254.  We should see the market continue to impulse lower the next 4 to 8 trading days.

Alternate count (blue) that Primary wave 4 (P4) ended today at 1284.72 are the [C]=[A] target of 1286.   The market should move gradually higher towards the Primary wave 5 (P5) target of 1440 over the next 6 to 9 months.  Remember P5 will be made up of 5 major waves, so it will take a good deal of time to unfold.

Support is at the 1279/1282  and 1273/1277 gaps and then the 1257 and 1245 pivots.  Resistance is at the 1291 and 1303 pivots.

Just like during the May-June 2010 Primary Wave 2 (P2) correction, Dr Copper corrected and made it’s bottom well in advance of the SP-500.  Dr Copper bottomed in the first week of June 2010 during P2 and the SP-500 bottomed a  month later during the first week of July 2010.   During Primary Wave 4 (P4), Dr Copper bottomed on May 23rd 2011 and I’m expecting the SP-500 to bottom between today (June 6th) and Wed June 15th, 2011.

SP-500 5-min chart (EOD):

SP-500 15-min chart (EOD):

SP-500 60-min chart (EOD):

SP-500 4-hour chart (EOD):

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