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?

It was a remarkable turnaround in AAPL indeed. Up more than 5% of a low in less than 2 hours. What a day!

That's why AAPL is one of my favorite trading stocks.

Note that the ES is at the upper boundary of the 3D. If this can't check it back, that really tells me a lot. Normally I'd expect a checkback and then up and over. But it looks like it just wants to explode.

AAPL back to a .447 at a key line, plus some other cool things in there, and it just rockets up. The buyers are back. Let's see how long they last.

I should probably visit a doctor because all I can see now are short setups:

And if somebody is looking for 'first move is almost always wrong' Fed move setup, then here it is:

But yet you still haven't posted or shown the critical support zone this is sitting on... Even if you want to fade it (trade against it), you should at least be showing it, acknowledging it, assessing it, and then concluding, if you choose to, that it won't hold. You are trying to fade it without even knowing what it looks like!

Originally posted by jimkane

But yet you still haven't posted or shown the critical support zone this is sitting on...

Here is the support zone:

ES now almost 20 points off the low.

Now 25 off the LOD. This came right off the support that I mentioned in advance as many times as I could stand to. I think this is three or four times in a row, if my recollection is correct, that I mentioned spots like this in advance, to a very cool, unreceptive crowd, and a substantial move for trading followed right off the areas.

Yes, this now has a pattern here. And yes, the 'First move off the Fed announcement is usually wrong' is a consideration. Still, this is huge support area, and probability-wise should either create a bigger bounce than this, or a bounce and roll into an ABCD down lower, and then up again. And it may just go straight up from here. I just follow the setups. But understand, so far it has acted consistent with still being in a strong uptrend, and until that changes, that's still my higher timeframe premise. Remember, the most important lesson I am trying to teach is that I want to be wrong at the turning points on the traded timeframe, since I am a trend trader, not a target trader. If you don't like that as a style, or can't handle it, be a target trader, or find your own style.

I think the recent developments are a great proof for the validity of your approach. Fortunately the support held because otherwise as you say a bad lesson could be learned. Maybe our whole discussion was not that bad at all and will bring some educational benefits...

I see the current obvious short setup you are talking about but will not post it not to confuse things any more. But it might be good for at least this 'roll into an ABCD down lower' you mentioned above.

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!