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.

Hasn't it a smaller bullish .786 ABCD set up against it's bigger bearish counterpart?

Yes, the .786 ABCD at the 1.272 BC ext ret, and the other ABCD areas below.

If it rolls to the other ABCD area(s), though, the line you have goes, it gets to areas that aren't very synergistic, and hence it may be a 'W3'. So that's a big part of why this is critical in here, and why they will likely defend it vigorously. Plus, any selling momentum in here could be fatal. So, if they can't run it up, I'd think they will at least just chop it. Hey, I hope they can break it down, but I can't see it.

If they can drop it, watch 72 +/- very closely.

This may really want 70, too. I'm thinking that may be the next stop. And after that, 65. We'll see. Just staying short side bias, seeing which area it wants to gravitate to...

Okay, there's 72, but the ABCD has an ABCD in the CD leg, so it 'should' keep going...

yes JIM..watching 72 and 67ish

71. +/- for both areas, 70 and 72. It's right in the heart of it now. Let's see.

These are the best lines I could find for this ABCD:

Bounce and roll from an obvious area. Showtime...

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.