There's not much to add to Jim's yesterday post. I'll refrain from posting here long term setups which are not based on KT methodology.

PS. This might be a good contrarian indicator of a nearby turn :-) DJIA has just completed an ending diagonal almost to the day at 0.618 time retracement of Oct 2007 - Mar 2009 drop

Bounced a little off the .786, now bouncing off the .886. Can't wait to see if they chop it in this ABCD range here, or drop it. This is a case where sometimes I may be short, and actually rooting for it to chop instead of drop even if I made less money because in the bigger picture it means I'm seeing a price action layout that is repeating itself.

But, as I said, it is acting weaker than it usually does in a chop range, so I suspect this may do a flush out. At least the odds of it are increasing.

BTW, did I call that EXP and upper 'It needs another ABCD' thing, or what?

The more I study that EXP, though, the more it looks like a B=D ABCD (12:12) and 'W5' (13:03), and then a standard (zigzag) ABCD after that, and not an EXP. Either way, the setups and areas were clear, no matter the lableling.

In such case that standard zigzag ABCD might have been too small to correct the whole preceding decline and that's why more chop around might be needed

The decline on the Nq wasn't as bad as Es AND has reached support. The downsloping blue line is off of the monthly adjusted set....a kissback to say goodbye?

Also this

This thing continues to look very weak. All it could muster overnight was an ABCD retracing a mere 23.6% of the last drop:

If it accelerates through the lower ML then I would see the correction in blue as Elliott running correction - I don't see a clear Kane setup to support this:

Nice action what a sell off !!


Mats

Jim - do you wait with your post number 5000 for something special to occur? ;-)

i hope all grasped what i did... i did not forcast.... i simply used the tools of this forum across all my traders until there was not a single buy signal left... that is when important reversals occur...AT THAT MOMENT IN TIME!!!!, THERE IS SIMPLY NO GEOMETRY LEFT TO SUPPORT THE MARKET....jim is perfectly correct to be looking for ABCD'S.... I AM TOO..but looking across hundreds of charts, i believe price was at or near this years high at the recent high...i have no big ideas of how important this high was based on theoretical constructs.... just trading the tools....as the machine that grinds.