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.

Up 17 now! Wow. Volatility is back. Looks like they like that low, for now. Tomorrow may be up huge.

triggered on the.382/447 abcd..basis 3 min. management mode...with areas at 86 and 96ish if it completes.

Nice job. You still with it?

Good job with this setup Eric!

yes..still with it.. i have bben hugging up the stops. below..but willing to click out 2/3 in this area..

88-88.25 is major .300/.382, at a key line, so I'm very cautious in here.

It's also a .786 ABCD off the low. It seems nothing can stop this now, but I'll stay cautious. The best line is up around 1100, by that 1098 .382 and 1.128 ABCD. So, if they dip it and run it up for another leg, that's a key spot, and nice round number for them to shoot for. But, 88 may be it.

cut 2/3 as it did the 1.27 and broke back...

It also sits exactly on the line from my longer term set:

Jim - would you consider the possibility that the whole drop from point D on the chart above to today's low was a big 3D?

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.