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.

Reacting nicely to .447 bearish ABCD:

across the board, traders at key geometry... stops tightened...

I was just about to post the comment 'Very, very, very interesting it rolled hard off that 1.272 ABCD at key line and area' when I saw your post. Nice work. But, now watch the same .786/.886 game. They are staying under this, those government manipulators (my opinion on who it is and that they are doing it).

squeeze

Two bounces off the .786/.886 area. Looks like a failure ready to happen, and down it goes, which should really get it going. If so, GLD should go up. Let's see.

And there's the break of the area. Stop run, or start of the real move? Keep in mind this is now at my initial bounce zone I mentioned earlier.

Gold is not rising. That makes me think the market may...

Or it just needs a little more time. Or perhaps they will both fall in tandom because the geometry of the gold is down, and so is the market's, and the intermarket dynamic is overridden by this. We'll see. Hard to make any use of what I just said, it's just an observation.

Okay, I expect the markets to go down. Germany just announced they will ban all short selling of stocks and Euro gov bonds starting at midnight. Un-f'in-real, these people.

Get your gold, step right up, folks, and get your gold :-)

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.