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?

And here comes 1100 Marco

... and here are the lines supporting the current spot:

Bulls are not giving up but still have a lot to prove. In Apple an ominous setup is looming with .886 after the gap:

Two 'tests' of 1100, and dropping like a rock. Let's see if this forms an ABCD in here, or not. Like you said, the bulls will really have to prove it here after a near 20 point run up.

There is something way, way cool about this run up that I can only explain in person. Not that it is solely a mentor only thing, but that I can't do it via static charts, I'd have to be able to work 'live' in GoToMyPC to show it. So, all mentor students should ask me about it the next time we work.

If 1100 doesn't hold, I'm looking at around 1106 next.

Originally posted by jimkane

If 1100 doesn't hold, I'm looking at around 1106 next.

For a potential EXP instead of TD ABCD?

Yes. Plus 100% IB, .382, and many other factors.

It more likely will do a 'W2' like pullback in here to maybe 1090 or below, though. I'm just seeing if this forms an ABCD here for another push up, or not. The short setup here was well worth a shot, in my opinion, so it is more a matter of clues now. I'm highly suspicious this has a lot more to go on the upside.

Jim - do you consider TD ABCD a "weaker" correction than EXP ABCD in a sense that one can differentiate the potential thrusts out of them based on this distincion?

Originally posted by jimkane

...I'm highly suspicious this has a lot more to go on the upside.

But you don't have a pattern for a move up off today's low or do you?

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!