For the next 2 weekends I’ll be out skiing so I would like to show some updates of the charts we are following here. First of all we may be certain that Ending Diagonal on DJIA I was showing here many times was finally completed:



The behavior of the market after completing an ED was a textbook classic – free fall to the base of the formation. And since Ending Diagonals can either be wave 5 or wave C of something bigger, then the recent selloff simply has to be a start of something more serious to the downside. Maybe the MLs of our 2 DJIA sets which in my opinion are still in play could be next targets?

Originally posted by jimkane

Yes, 4 PT's can work quite well with .685's ...

Can .685 be on both points 3 and 4 of a Kane 4PT or is it allowed on just one of them?

Originally posted by jimkane

... The biggest issue I have here is how far this has dropped, how small that correction is, and that we are 'on support' to an extent...

If last week was THE TOP it should in my opinion drop much further before any meaningful correction. Otherwise it would be just too easy for too many market participants to close long and open short positions. And the further it drops without any bigger correction, the more difficult it will be to conclude what is it planning to do next...

I have seen the alternate 4PT's with either or both points at .685's and still work out well. As long as things line up well with the line(s), I'm okay with using .685's.

But I still think this is likely going up a bit off that 3-min EXP ABCD there...

And it might aim for this classic 4PT (all sessions included):

Yes, that's one possibility. I'm thinking the standard ABCD at around 1106, but it just has no get up and go right now. I'm just watching it grind up slowly, cautious of a big sell program hitting it...

So far, so good on your setup, jarek. Keep an eye on this small ABCD here.

It could very well be that .685 point number 4 variation we talked about earlier today:



Very curious. Was it a self-fulfilling prophecy or what?

And this nice Kane ABCD could very well be Wave 2 of the move off the 4PT above:

Originally posted by jarek

And this nice Kane ABCD could very well be Wave 2...

It obviously wasn't. But again I'm watching the current area for a possible reversal in the result of the following TD Kane ABCD:



Or am I too short side biased?

Or am I too short side biased?

Hi Jarek,

watching the same setup, what makes me pensive is the round 1100.

This GLOBEX action is just incredible. Can't say I like the idea of sleeping from 2PM-8/9PM (or in two hour blips, or not at all...), but this action is just insane. Down about 9 points, up about 5 points, down another 9 points to within less than a tick of the 1.272, and then up over 10 points like a rocketship. And it's only midnight pacific time! This is just amazing!