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.

Jim...trying to follow ,do the work ,,digesting what you say ...by no means what you are doing is not appreciated.

Pretty straightforward lift off, off the key area mentioned first thing this AM. Now we see if it is short-covering, or the 'risk on' I sensed earlier. All I know is I'm strongly long side biased again, and letting it do what it does.

87 +/- is the only area I really have (this 86 is close enough, so I'm ready), then it's straight up. I'm just planning on ride until close, and adapting if they roll it.

Now, look at a Euro tick chart and tell me that wasn't an intervention... Almost 200 pips in half an hour.

Everything I said earlier seems to be playing out, they just let it take out the LOD to be sure they needed to come in. That's my opinion.

87.75, area hit solidly. Let's see if they come right back in, or if they are done.

Amazing the battle right at my key line and area. Two vigorous tries and two rebuffs. Now a nice flat ABCD. Let's see what they want to do.

Originally posted by EricD

Jim...trying to follow ,do the work ,,digesting what you say ...by no means what you are doing is not appreciated.

Good. Hopefully you aren't the only one listening. I'm not making this many posts for my health. I'm hoping people are following along, trying to understand my reasoning, and my techniques.

Oh, the incredible beauty of my areas... :-)

Entering the early 'game zone'.

76.50 there is a major area for me. If they plan to turn it up, that's the spot.

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.