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?

I have that old critical lateral support area that held for so long, a monster key TL, a key set line in the general area, other lines, a clear (to me) 5-waves down with a distinct 3-4-5 ending sequence, and a grouping of Fibs that is just crazy, from .236 to .382 to .447 and so on. Tight overlap off all the key swings for many other Fibs. It is a powerful area, one not to be ignored. Even if I don't have a clear pattern it doesn't mean I won't take note of key, prominent areas.

Originally posted by jarek

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?

Great question, but I haven't seen enough consistency to really offer anything up on this.

Maybe a nice DT here if it plays out?
With 1.618 ext and 0.382 and 0.618





Mats

Originally posted by jimkane

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.

And there's that 1090.

Great job finding that 1100 area, jarek. KT methodology at its finest.

But doesn't it look to you more like a start of the next move down than a correction of the rise earlier today?

Originally posted by jimkane

Great job finding that 1100 area, jarek. KT methodology at its finest.

But it was Marco who pointed to this area first :-)

Careful in here...

Why careful right there, Jim? .886 gap, to the tick. Nice spot for a 'W2' when viewed with GLOBEX. Do or die for the bulls, and bears.

Originally posted by jarek

But doesn't it look to you more like a start of the next move down than a correction of the rise earlier today?

I have trouble seeing anything but the monster key area from the higher timeframe (daily/240-min). Strong uptrend, support area on that timeframe. It's too hard for me to fight against. Eventually I'll be wrong, but there are no odds, over time, in fighting support in an uptrend (or resistance in a downtrend).

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!