shareswizard of 10years and still going strong

WHY THE FINAL TARGET OF 2375--2400???

point1:
WE ARE CURRENTLY IN WAVE 2 OF 5 WAVE ELLIOT THEORY..

WHY WAVE 2??

--from Elliott wave principle
From Wikipedia, the free encyclopedia

Wave 2: Wave two corrects wave one, but can never extend beyond the starting point of wave one. Typically, the news is still bad. As prices retest the prior low, bearish sentiment quickly builds, and "the crowd" haughtily reminds all that the bear market is still deeply ensconced. Still, some positive signs appear for those who are looking: volume should be lower during wave two than during wave one, prices usually do not retrace more than 61.8% (see Fibonacci section below) of the wave one gains, and prices should fall in a three wave pattern.

WAVE 1 WAS STI VALUE FROM 1455 TO 2950 AS THERE ARE NO SIGNIFICANT CORRECTIONS--a correction is defined to be 10 percent or more..

a.in april 2009-sti drop from 1942 to 1791--drop of 8.3pervcent

b.in may 2009,sti drop from 2283 to 2094--drop of 8.3percent ALSO!!!!

c. in june-july 2009,sti drop from 2417 to 2211--a drop of 8.5percent !

d. in aungust 2009, sti drop from 2700 to 2521--drop of only 6.7percent

THERE ARE NO 10PERCENT DROPS--CORRECTIONS as yet hence sti is due for a correction of at MOST 20percent from 2950...

point 2 :why 20percent??--because technically speakinga 20percent drop from the top is defined as "BEAR MARKET ENTRY POINT",hence there will be a lot of support there--
hence 80percent of 2950--2360!!!

point 3: as stated just now in point 1.--Wave 2: Wave two corrects wave one, but can never extend beyond the starting point of wave one. Typically, the news is still bad. As prices retest the prior low, bearish sentiment quickly builds, and "the crowd" haughtily reminds all that the bear market is still deeply ensconced. Still, some positive signs appear for those who are looking: volume should be lower during wave two than during wave one, prices usually do not retrace more than 61.8% (see Fibonacci section below) of the wave one gains, and prices should fall in a three wave pattern.

wave 1 gains stand at 1500 points:the 61.8percent of wave 1 stands at 2380!!!(depicted in chart)

point 4:300day SMA stands at 2295 as of 10feb 2010,hence when sti drift downwards,the 300days SMA shall go up to around 2350s-2400s

point 5: wave 3 is the strongest and longest wave of 5wave elliot theory..

Wave 3: Wave three is usually the largest and most powerful wave in a trend (although some research suggests that in commodity markets, wave five is the largest). The news is now positive and fundamental analysts start to raise earnings estimates. Prices rise quickly, corrections are short-lived and shallow. Anyone looking to "get in on a pullback" will likely miss the boat. As wave three starts, the news is probably still bearish, and most market players remain negative; but by wave three's midpoint, "the crowd" will often join the new bullish trend. Wave three often extends wave one by a ratio of 1.618:1.---wikipedia

hence 2375 will be the BEST launching pad to take sti to 3900,the 2007 highest point--as wave 1 was 1500points---u add that to wave 3 which is MINIMUM 1500points--WONT U GET 3900 minimum??

and as stated wave 3 extends wave 1 by 161.8percent ABOVE---hence sti will crack the 3900 and probably to 4700!!!!!!!!!

point no.6--sti BREAK DOWN of channel of 200points--2700 to 2521--hence the target is also 2300s to 2400.


in conclusion---please dont miss wave 3 UP!!