Price Pulse Theory

     Happy New Year to all! I begin 2011 with a look at the Long Term Price Pulse Theory of the cash SP500. For those unfamiliar with Tony Plummer's work in this area, a complete price pulse cycle is labeled alpha-beta-delta-x-y-z. The resulting patterns can tell you much about the position of the market.
     This chart is telling me two things: One, that I should be leery about the staying power of the rally from the 2009 low; and, secondly, that an Elliott third wave most likely ended before the beta-x trendline break in 2008.
      I will continue this discussion with a look at the DeMark Yearly chart tomorrow.