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

... the last setup, the one you didn't post but I wish you would have ...

I din't want to make the impression again that I was looking to short right above the support. This setup was of course the EXP ABCD and not the TD ABCD I showed at the end of day yesterday. It played powerfully with a move of almost 30 points. I don't insist that it's going to break the support now but this little ABCD looks more and more like a Wave 2...

Well, my point was, create a premise that fits with all the 'context'. The setup was valid, I was all over it myself, and was able to read the PTA almost to the tick (no claim, just an opinion), and almost posted it as it happened last night, but thought everyone would think I was nuts being up that late, so I didn't. But my play, again, was back to support. I wasn't saying my premise was this little pattern will take out primary support. Maybe it will, but the methodology doesn't call for making low odds calls, and then when one works thinking that's a good approach. My objection wasn't the short setups down here, it was the premise that primary support with the trend won't hold. Until proven otherwise, I assume the trend will resume.

As an aside, though, I will say that price action in here is giving endless clues that this area will not hold. Given tomorrow is Friday, and the Sunday night/Monday thing is coming up, I'll see what it does. GLOBEX tonight will be critical, so I'll probably not sleep until after Friday's close, or maybe some now, until the action picks up later (got to see what MSFT does once it 'shakes out'...). Something big should be happening soon, and I want to be on it.

Yes, jarek, that little ABCD is an important clue. It had an 'odd' frequency, but I finally found it. The key is what it does right here.

jarek, check your work e-mail. (Oops, you are on vacation, no? If you can't check that, let me know and I'll send to your other e-mail address?)

Originally posted by jimkane

... GLOBEX tonight will be critical, so I'll probably not sleep until after Friday's close...

It must be really critical if you plan a sleepless night...

Originally posted by jimkane

... you are on vacation, no? ...

Actually I'm leaving tomorrow. Thanks for the e-mail.

Originally posted by jarek

Originally posted by jimkane

... GLOBEX tonight will be critical, so I'll probably not sleep until after Friday's close...

It must be really critical if you plan a sleepless night...

Well, it's not so much how critical it is, but more that like you pointed out, a lot of the action happens overnight. So, the 'best' hours for me to sleep are say 2 PM - 8PM/9PM, for example, if I want to really cover the action.

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!