Getting close to a key spot (as posted a few weeks ago, forgot which thread)

By easy I mean just look for long setup after long setup after long setup, all of which are fairly clear via the methodology. The bias is strongly up, for now. It may crash any day now of its own weight, but until it does, the bias is one-sided. The market rarely shows its hand and then follows through for very long. We now have over five months of nothing but up.

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Originally posted by jimkane

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Originally posted by EricD

do they take out the globex highs today or tomorrow...they want 1015

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Probably in GLOBEX. This is one where my plan would be holding some over into the GLOBEX.

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1015.75 so far in GLOBEX! I can't wait to see what they do as the European open draws near.

Put it this way: If you take every good long setup right now the odds are strongly in your favor

so who likes the 4pt?

my feeling is that this has more downside.

last spot for the 4pt right here

That is the question right now, M, this 4PT.

It's a 'deep' one, really a 4PT/flat hybrid, but it's clear, and there's a line right here. A bounce and roll would be nice.

you said it clearly it could drop any day now.

That's the thing. They wanted that 1015 area, and they pushed it in there four times after the initial time back on the 7th. They got it, and couldn't get to those 1.272's, so it collapsed of its own weight. In the past when this happened it went right to a key area, usually with a clear pattern, and then up like a rocketship. As long as it keeps doing that, I'll keep leaning on that. When it stops, I'll lean on the short side.

They can only fake out the public for so long saying things are good when they are worsening every day. Lots of shoes are about to drop. 2010-11 is going to be a major reset time for Alt-A mortagages and ARMs, as well as a lot of commercial RE stuff. It's just a matter of how long they can manipulate it up for this record distribution that is happening, and it isn't even hidden, the stats come out every week and clearly show it. Once the downside starts, I think the next leg, the 'wave 3' is going to change everyone's thinking. I still think we will see S&P 300 at some point.

yes to the trendline creep.
higher timeframe chart for clarity