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HUI Elliott Wave Analysis

October 2, 2007

This article was originally posted on Sunday September 30th for the benefit of subscribers.

The short-term Elliott Wave chart of the HUI is shown below, with the thought path denoted in green. I expect the HUI to hit 401-403 on Monday AM, to complete wave (1).[1].III. Wave (2) should take approximately 4-5 weeks to complete, bottoming around early November. As mentioned last week, wave 1 was longer in time than wave 2, suggestive that wave 1 was to be the longest wave in 2/3 of time, price or complexity for all impulsive waves of Minor Degree (pink). There is the possibility that wave 5 could still be underway until Friday, or that wave 4 is doing a [c] wave down to 380 before bouncing up in wave 5 (grey, alternate count). Regardless of which pattern turns out to be correct, the corrective structure should follow something like the green pattern presented. Wave II terminated with a complex pattern and the explosive move that followed qualifies the labeling scheme as correct.

Figure 1

The remainder of the update is reserved for subscribers. As an aside, our initial of assessment of the S&P 500 has remained accurate since June 2007 and I will update this in a few weeks.

David Petch is a cofounder of www.treasurechests.info which has been in existence since 2003. His technical analysis focuses on Bollinger bands, stochastics (using daily, weekly and monthly charts), as well as extensive Elliott Wave analysis. His recent discovery of the Contracting Fiboancci Spiral the broad stock market indices are trapped in has indicated every major top since its inception in 1932. The CFS cycle also identifies expected major tops between now and 2020. David holds a BScH and MSc in Microbiology.


The California Gold Rush began on January 24, 1848 when gold was found by James W. Marshall at Sutter's Mill in Coloma.
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