Summary:

The S&P at 1245 is the critical support level for the US financial markets: it is boundary line for the current Age Of Prosperity; once that level is breached, the Age of Hyperinflation and Financial Ruin will be in full effect.

Financial security can no longer be found in fiat investment: wealth is both secured and preserved by investing in physical gold.

I. From the work of Bill McLaren, I conclude that the the S&P Is Set to fall from 1245: in the Stock Market CNBC Report dated July 31, 2006, Bill McLaren writes concerning the S&P Chart: You can see how the index broke the May low in June but immediately rallied back well above that low with a 13-day rally. The next thrust down held the "obvious" June low. Many of the other indexes as the NASDAQ, RUSSELL & S&P Midcap all showed marginal breaks and a recovery indicating a complete wave structure or complete leg down. Last week on my website I published some analysis all the tops and bullish consolidation for the Dow Industrials for the past 70 years and a couple conclusions were obvious. Once that initial leg down is complete, no matter if a top or a bullish consolidation the index has pretty much set in the range for the next 6 to 9 months.

II. The fall from 1245 is simply a continuation of financial meltdown that began in mid-May 2006

III. Related Charts And Reports:

S&P 500 Index ^GSPC On Yahoo Finance shows the S&P at 1278 on 8-2-2006.

The Three Year SPX Chart as of 8-3-2006 shows the critical 1245 support level of the S&P 500

Marty Chenard in Charts and Commentary dated 8-4-2006 provides the VIX threshold support resistance chart, the S&P 30 minute support resistance chart and the stock timing fear index. He does not issue and buy or sell timing recommendations on his daily update pages like the one referenced: his buy/sell recommendations and advanced market models are only available to his paid subscribers on a password required basis. It is just that I choose to present his work as factual insight into what I see as the critical S&P 1245 level.

IV. Wealth Preservation And Management Strategy

Financial security can be found in gold: even at its present high prices gold is a wise investment choice -- the only real investment choice as both the dollar and the financial markets are falling.

It is wise to own gold in physical form: this means own and store in a vault and own in store on one's property. Some have suggested a Gold ETF such as GLD or IAU; however, these are not real assets http://tinyurl.com/lpxzm

Bullionvault.com is a convenient service that purchases and stores one's gold. http://www.bullionvault.com.

The Good Web Guide Review says: "An investment website for people to buy and sell gold bullion, which they own outright and is securely stored in professional vaults by Brinks. The website scores highly for being easy to read and being well-designed. It is clearly laid out for even an inexperienced user and the home page has links to detailed but simple instructions and FAQs." At its first review BullionVault was awarded the maximum rating of 5 stars. http://www.bullionvault.com/news/stories/2005/thegoodwebguide_review.html

One should also own gold and store on one's property: like buried under concrete on one's property: where one, at a time of need can physically dig it up and use it as necessary