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.

Okay, skeptical as I have been on this one, I sure can't complain. This is playing out quite nicely. Maybe the Iranian news gave them the excuse this time?

Now, be very cautious at this ABCD here. W3 or CD leg?

W3. Key line and .382/.447 here. This may be it. Let's see. Price action is king. If the area was truly significant this will take out that 1056 low. If not, there are various areas on the way down. This is the very first one. Do the work.

Chart

Al Kamego

raining hard/trading hard... so i sit in my darkened room and hit my scans and hit the geometry not caring what the symbol is.....it is just a game to be played well or poorly...

KTK!taking bites out of the big apple

Nice stuff, roofer.

Okay, ABCD bounce to .447, then rolls, now right back at the key line and .382/.447 area, for an '.886 retest'. If this keeps going down, then my area may have some legs.

Didn't even get that posted and it flushed. Staying short side bias now until the next level, but watching the 1.272 off this ABCD in here, in case.

Next level appx. 25.

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.