The developments of the last 2 trading days make me consider the whole rise from the post crash bottom to the last week's high as a W2 Kane ABCD:





Timewise it doesn't look good because it rarely happens in a zigzag that CD leg lasts 80 times longer that AB leg. But if it comes to proportions - it's almost perfect: AB and CD legs are nearly equal and whole ABCD retraces between .685 and .786 of the preceding leg down from the top.

Initially I thought that whole zigzag should finish at May 11th high. Now I see that high as a C point of a W4 correction in the CD leg:





The behaviour of the market in the next couple of days should help us jugde whether this interpretation is correct. This is rather important because in such case we should expect a drop to at least 1020 (1.272 external retracement of the ABCD) and probably much lower if W3 down has just started.

Careful here at 84...

Like I said...

Now, is this the final push to that 69.50-70 area, or is it game time, and up it goes? Watch that .786/.886 game zone. I suspect they will come in sooner, maybe here at 78.50. Let's see.

My bad, it was 78.25. Do or die spot here at line. It must burst up now, or it could get slammed.

Carl Futia is calling for 1115 off this low today.

It needs to take out this line, this isn't right...

Phew! Next spot I'm watching is centered around 87.75, then about 93.50.

But this is now a potential bearish ABCD and it could start any time, so be careful!

1-min TL right here. It should explode up now if up is still the direction.

And, of course, it does explode right up. Watch my area here...

87.25 was the high there. Within two ticks of my center, but actually it wasn't the center, it was the high point, I wrote that quickly while trying to follow the action. .300 is at 86.80, the .886 price projection was at 86.67, the key line was at that same level, and the 1.000 price projection was at 87.75. It hit dead into the key area. It's hard to post the levels and their ranges real fast, and if I don't do it real fast I can't do it at all and follow the action for myself.

I don't think this wants to go down much more, though, so it may just be another quicky pullback. If this can't go up strong in here it may then just chop for awhile and 'digest'. I wish it would do another push down to my 70 area...

I suspect a big run up in GLOBEX and a huge gap up over that line. We'll see. The weekends are getting longer and longer as the inevitable blowup gets closer.