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 jarek

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 :-)

Okay, credit to both of you :-) You guys are getting better at seeing the setups.

Also Apple found support in a Schiff ML after droping already more than 4% off that .886 after the gap:

Great read on AAPL.

Well, they don't like YHOO. New LOD. .886 gap didn't hold. The 'W2' premise isn't dead yet, but nothing has happened to take me off the short side yet, either.

Big turnaround in YHOO, and the futures are getting really strong in here. Too early to tell, but I think 'W2' is in. GLOBEX has been wild lately, though, with many new and deeper tests, so we'll see.

Today's volatility looks ominous

FOMC today and the second day of the market (ES/SPY/SPX) trading near the Daily SMA 100 area (good support, big orders coming in)

Originally posted by Marco-T

...good support, big orders coming in...

This is why when it breaks, it breaks really hard

What a congestion of Kane ABCD patterns we have today in ES! And all are pointing to the downside...
First it was a TD Kane ABCD. It was a fractal version of yesterdays bigger setup, also if it comes to the chop after the completion of the pattern:

Then it morphed into a 4PT (probably a kind of Jim's hybrid pattern):

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!