Here's the 4-Point I was discussing in Jim's Thoughts, with my key set. The key set line was the main factor for me. On the S&P cash it hit the line and 'tested' it three times pretty much dead on. No matter how you label this ABCD, it was an ABCD to me at a key line, with 'context'.





Now we sit at a key line, with TICK hitting an extreme, 1-min volume short-term climactic, and so on. It would be something to see if they can't bounce this up here. What a play so far, though, eh?!

Also, as a curiosity, the 1.618 hits near that lower //, just about at Laundry's low move for this leg. Very interesting.


Chart created on QCharts, courtesy eSignal.

This thing is moving like the old Russell today. Just beautiful and very predictable for anyone familiar with the Kane methodology aka Kane Traders.

I wasn't sure where to post this, here, the SPX topic, Jim's Thoughts, or a new topic.

The next two areas I have for this bounce are the one right where it reacted today in the after cash close, where I have a great set line, some other lines, and a fantastic Fib grouping. Above this is my 'most probable' area, 740ish, where the best set I have comes in with a .382, multiple other lines, and lots of key Fibs. It is also the Nov low. The issue I have is that everyone, and I mean everyone is watching and calling this area. Hey, maybe like 666 that will make it a self-fulfilling phrophecy again, but that usually isn't the case. The masses are rarely right, or right for long when they are. Still, this is a most compelling area for me to watch. Ideally it would pull back a little in here, following up on what it started a bit, then burst up to form an ABCD into the area.

Another thing I am watching is a new pattern I have been developing (I've had the pattern for years, but am finally just getting around to the work to clarify it, decide on some parmeters, and decide if I want to show it or not), and it hit dead into today's area. So, although it looks like the 'bull is back', I am still keeping an eye on this spot here it clearly 'saw', just in case. Otherwise, 740ish, then see what happens there. If that gives way, then I think this rally could get some legs. The next spot, another key one, comes in around 770. No one who understands my methodology and my use of sets should have any trouble finding all three of these areas and doing the full workup on your own.

new pattern, eh?
I am posting the 3 areas as I see them separately to avoid clutter.
There is another area circa 790-800 depending on timefactor that I find significant.

As they say: 'Those be the areas...'. Nice work. And yes, my next area is the same as yours, the exact level depending on how long it takes, as you said. Rarely have I seen such clear levels/areas like this. There should be some awesome trading ahead of us, in my opinion.

I am also looking at this as the potential end of Wave 3 for the bounce, so we might get a Wave 4 correction right here

Well, if this is 'wave 4' and 'wave 2' was that 4-Point CP, we might see a bit higher. Balancing with 'wave 2' is your last chart, but here's one thing I'm thinking. If it does just 5 waves down, not 7 (which is a very common thing, despite Elliott rhetoric), if the area below I have been discussing is the magnet, if this bounces too high, it would need an extended 'wave 5', which I don't see as likely, or a 7-wave move, which is very likely how it would get itself there. The 1.272 external retracement will actually go lower the higher it bounces, but to have 'wave 5' compare with 'wave 1' the best bounce area is that 740 area, if this is to 'line up' with a single 'wave 5' move down, to the two sub-areas I showed above that lowest 1.272 area at around 550.

Now, maybe the cart is in front of the horse here, maybe we go straight up to Dow 10,000 like they are saying on TV. But if not, if we get above the 740 area I suspect, again if it rolls over, it may have another bounce before hitting the lower area, and if it goes higher, say the 770 area, then it may be a 7-wave down, if it does go down. I can say one thing, if they bust this over 740, they will be screaming that we are above the Nov low and it's surely a new bull. That would be an incredible sucker trap. So, I am watching for that. One thing is almost for sure in my mind, and that's that this will follow through some from here. Although I'd not mind it one bit, I would be really surprised if the area I have for today turned this right back down. That record TICK value should need some time to digest, and if they can't do anything with it in the next few days, that's when they kill it. Man, I can't wait for tomorrow!

I was actually referring to the bounce we are currently in where today with the gap up was Wave 3 of the bounce.
I agree for it to be a true Wave 4 this is not anything yet, it's just one little stub on the chart.
I was thinking how ironic it is when the charts are telling us something one bit of bull news like with C today comes out and it validates
the area. Like parallel universes or something or a planned ppt setup...

I see. Yes, what you say makes sense.

So, the futures are up, looks like we may get that follow through that we need to have the TICK extreme do its thing. Can't wait to see how this plays out, it is so 'technically cool'.

Okay, so was that the 'wave 4', and now we head for that 740 area? Sure looks like it. But they can't fade right in here...

There's spot right here that they need to overcome. The 740 seems right timefactor wise.

I agree, T, with pretty much everything you've said. I commented a little in my weekend commentary on the unlikelihood this is a 'bull market', given all the things it is doing that have never been seen at the start of a bull market before. The intermarket dynamics are indeed pointing to the possibility of something big happening soon.

I also agree 100% with the potential doomsday scenario. There was a time when I thought all that stuff was 'crackpot' nonsense. Then I started to think maybe some of it might be true. Now I tend to think I just see no way that we won't crash back into the stone age. I try and try, but I just can't see how it can be avoided. I even think it may be engineered, not simply something that happened because of greed gone wild. I never, ever believed I would ever think something like that, but I also never thought I would ever see even 10% of what I have seen so far. Sure doesn't make me happy or hopeful for all of our futures, as you say, as 'citizens of mankind' :-(

Great market concepts, T.