If you are into this stuff, then feel free to read it. If you think it is voodoo, then enjoy a good laugh… But keep in mind that the markets have had very thin volume the last few months and these levels have been used by the Hedge Funds and traders to accelerate price moves.
You can read about the Elliott Wave Theory here –
I think we are in Wave 5 of the move off the October 2007 High.
There are clusters of support levels at 664/667, 693/698 and 640/645
The upside resistance levels are clustered at 762/763 and 784/788.
Big chart resistance starts in the 815 range.
Wave 2 of this leg lasted 14 trading days, so we may be in a rally, or a lateral consolidation for a few weeks, before the final leg down for this Bear Market.
123% retracement of the 2000-2002 Bear Market is at 611
62% retracement of the 1982 – 2007 Bull Market is 663
A rally into the 750-800 range leaves a massive cluster of support at 663,664/667, 661/666 and 654/656
That may be the final support level for the Bear Market of 2007-2009.
Time will tell, but I will be looking to buy reversals off of that level in about 20 trading days.
If 660 fails, then the next support lies in the 611, 611 and 615 cluster.