™

NEoWave CHARTS
Mon, Dec 18, 2006 Analysis by Glenn Neely
Suspected Pattern Developing:
GOLD - Daily Data Contracting Triangle for wave-B
(emailed each Monday before 11:00 am PT)
A
750 b d
A
725 e B?

c
700
a
b = Gold is here
675
B d
650
D

625
F?

600 A
C

575
a E G?

550 ANALYSIS: Last week’s bottom-line was “...Gold should be head- c

ing sideways-or-down the next few weeks.” Dropping more than $12
525 for the week, that requirement was met. After months of consolida-
tion, it is impossible not to notice Gold has been contracting the last Trend next 5 days:
500 6+ months. The most important question remains whether the con- Sideways or Down
traction begins after this year’s high or with the rally into this year’s
475 high. The answer to that question will decide Gold’s fate for years.
For assistance, write to CS@NEoWave.com
450
Apr 18, 06 May 18, 06 Jun 19, 06 Jul 19, 06 Aug 18, 06 Sep 19, 06 Oct 19, 06 Nov 20, 06 Dec 20, 06

NEoWave™ CHARTS are produced by NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) NEo-Wave (636-9283) • www.NEoWave.com
 NEoWave™ CHARTS
Mon, Dec 18, 2006 Analysis by Glenn Neely

NOTES (via inverted 10-yr. cash yield) - Daily Data

(emailed each Monday before 11:00 am PT)

3.6 ANALYSIS: Notes continue to behave so closely to the

Trend next 5 days: requirements of a 1st Extension Terminal that I have finally
3.7
Sideways or Down decided to remove the question marks from waves-1, 2 and
3.8 3. To properly alternate with wave-2, expect wave-4 to form
3.9 a a Flat and consume 200% to 300% of the time of wave-2. As
B
4
long as wave-2’s low is not broken, and one more new high
is then made, the end of low interest rates will be at hand!
4.1
For assistance, write to CS@NEoWave.com
4.2
4.3
D
(e)?
3
4.4
A
4.5 1

4.6 4?
4.7 C

4.8 (d)
a Suspected Pattern Developing: 2
4.9
Flat ending with a 1st Extension
5 Terminal c-wave
b
3 5
5.1 d
x1
5.2
4
a 2
5.3 E
c
5.4 e b
= NOTES are here b
5.5
Feb 22, 05 May 23, 05 Aug 22, 05 Nov 22, 05 Feb 24, 06 May 25, 06 Aug 24, 06 Nov 24, 06 Feb 21, 07

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 NEoWave™ CHARTS
Mon, Dec 18, 2006 Analysis by Glenn Neely

Suspected Pattern Developing:

Large Expanding Triangle
S&P 500 - Daily Data
(starting August 2006) (emailed each Monday before 11:00 am PT)
A?
1450
B
b
d B?
d?

1425 Trend next 5 days:

b
a Volatile Consolidation A?
e

1400 c e
C = S&P is here c?
a c

1375 d a

1350

B
1325

1300
2
ANALYSIS: Despite recent, new highs, the S&P’s behavior
4 allows me to maintain the conclusion point of wave-A. Since the
1275 time consumption of each leg following wave-A is tending
toward equality, my immediate assumption is a NEoWave
5
1250 Diametric (or Symmetrical) is forming. If so, the S&P will top
1
C early this week and drop back around the lows of wave-c.
Afterward, a mild new high would be followed by another sell-
1225
off below wave-c.
3
For assistance, write to CS@NEoWave.com
1200
Apr 13, 06 May 15, 06 Jun 14, 06 Jul 14, 06 Aug 14, 06 Sep 13, 06 Oct 12, 06 Nov 10, 06 Dec 12, 06 Jan 10, 07

NEoWave™ CHARTS are produced by NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) NEo-Wave (636-9283) • www.NEoWave.com
 NEoWave™ CHARTS
Mon, Dec 18, 2006 Analysis by Glenn Neely

EURO - Daily Data

ANALYSIS: A week ago I warned “Wave-(4), (emailed each Monday before 11:00 am PT)
to alternate
1.3600 properly with wave-(2), will take far less time and will exhibit a
Zigzag type correction.” The severity of last week’s sell-off is
already making my forecast come true. With wave-x(3) so close x(3)?

1.3400 to the length of wave-(1), but still shorter, we can confidently say c
wave-x(3) cannot be over. As a result, I have labeled the recent
high wave-c of a Zigzag and the current drop wave-x of an
1.3200 ongoing, complex correction to ultimately end wave-x(3).
For assistance, write to CS@NEoWave.com
1.3000 (1) x?
b

1.2800 a
b
Suspected Pattern Developing:
NEoWave Terminal after wave-(B)
1.2600
(5)
c (3)
a (2) x(1)

1.2400 (x) (4)

(d)
(b) (2)
(e)
(a)
1.2200
(c) B
Trend next 5 days: = EURO is here
(e)
1.2000
Bottoming?
B

1.1800
Feb 2, 06 May 4, 06 Aug 3, 06 Nov 1, 06 Jan 30, 07

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