(C)

This was one of our two viable options for the DXY. It was noted
Dollar Index (Daily) on 5/9/10 that this would have very bullish implications. Because of “1”
“b” the way the waves have developed, the (B) wave conclusion had 5
89.62 to be pushed back a few days. Because the proposed waves 1
and 3 are similar in size, a wave-5 “extension” is required. Such
(A) an extension would target the 92-94 range before concluding.
3

1 4

d
“d” b 2
y
x
e
“e”
c
a (B)
w

x A running triangle?
w
77.69
“a”
x
y

74.33
z of “c”

Andy’s Technical Commentary__________________________________________________________________________________________________

 “1” of ( C )
Dollar Index (240 min.) 5

It’s pretty clear that the DXY is thrusting out of a triangle development, which is
usually a signal that we’re experiencing the last wave up before the conclusion
of a larger pattern. In the setup here, we have not see an “extended” wave yet.
Therefore, the coming wave-5 must be the extension. Wave 1+3 = 5 targets 92,
which would be the minimum objective of this pattern. If this is what is
transpiring, the DXY would have no business breaking back below 87.45.
Shorter term bulls should consider 87.45 as a “stop” on new length.

3
87.45

1 4

d
b
2
“d”
e It’s difficult to be believe that we could
“e” experience yet another violent move higher
(B) given the current extremely bearish sentiment
c towards the Euro. With that in mind, the
a alternative, less bullish model, remains equally
viable.

Andy’s Technical Commentary__________________________________________________________________________________________________

 This less bullish count cannot be ruled out. In many ways it reaches a similar
Dollar Index (Daily) conclusion to the other model in the sense that we have a larger pattern conclusion
coming. However this count implies that the move should be over very soon and
does not target anywhere near the 92-94 zone. In the longer term, both of these
models remain bullish.
“d”
“b”
89.62 e?
(A) Bears will be hoping for a “double top” to hang their hat on. WIDE SPREAD
PANIC (C)

The clear a-c line break required of

an “expanding” triangle.

“e”
c (B)
x d

a
x
w
77.69
“a”
b
y

74.33
z of “c”

Andy’s Technical Commentary__________________________________________________________________________________________________

 Dollar Index (240 min.)

This would be the model that bears would be hoping for--that we’re about to “d”
finish the powerful e-wave of an “expanding” triangle “d,” the conclusion of which e
would lead to several weeks of corrective behavior (the “e”-wave). The only way
-y-
to verify this model is to drop back below 87.45. Under this counting, the market (c)
should reverse hard into the 89.60s. 89.62?

-w-
(c) (a) [1]

[2]

(b)
(a)

-x-

-b- -d- “e”

(b)
c
-e-
d

-a- -c-

Andy’s Technical Commentary__________________________________________________________________________________________________

S&P 500 Cash (30 min.)
This is my primary short term count. It seems like we’re in the middle
“y” of (Z) New Wave probably of a double zig-zag type pattern. Whenever an “abc” channels
1205 started here. perfectly, as it did between 1205 and 1041, it almost guarantees an x-
wave development will follow. This pattern targets 979-1002. The
only hope for bulls is that the “x” has not finished yet or it becomes a
“b” wave. Either way, it will only be delay further losses.
-2- b

f
-2-
-1-
-4-

-1-
“x”?
Truncated “fifth” caused
by the extreme wave -3-.
-4-
-5-
a b

-3-
-3-

a
1041
-5-
A developing larger “impulsive” pattern cannot be ruled out here. c
For instance, instead of an abc down, it was a 1-2-3 and we’re
“w”
only seeing the wave-4 now. The extended fifth wave to come
would feel like a “crash.” (i.e. S&P in the 800’s in a short period
of time) c
“y”

Andy’s Technical Commentary__________________________________________________________________________________________________

 This would have to be the bullish interpretation of the price action: We
Dollar Index (Daily) have finally complete the Intermediate (B) wave triangle and are now
witnessing the beginning stages of a powerful (C) wave. The (B) wave (C)
concluded with what looks like an “irregular” triangle--it’s not unusual for
“b” the e-wave of a triangle to be a triangle itself. This model has extremely
89.62
bullish implications for the next several weeks. It would take a break
(A) below 82.71 to invalidate this count.

“d” b
y d
x 81.34

e
c “e”
w a (B)
x
w
77.69
“a”
x
y

74.33
Reprinted from 5/9/10 z of “c”

Andy’s Technical Commentary__________________________________________________________________________________________________

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NOT representing himself as a CTA or CFA or Investment/Trading
Advisor of any kind. This merely reflects the author’s "I" or "A" = Grand Supercycle
interpretation of technical analysis. The author may or may not I or A = Supercycle
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opposite of what may by inferred by this report. The information -I- or -A- = Primary
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