Last week's decline looks like the first leg down of the move off the big bearish ABCD. And this first leg down isn't necessarily over yet...

That's no 'W4'

Originally posted by jimkane

...But I think it's about to get toasted.

Now that was prophetic, to use jarek's terminology.

Here's what I think it did. You'd have to see the work to fully grasp this. I had one area at say 24.75 at the high end, and another area above at say 27-28+. I had two super key lines, and at this point in time they were at 25.75 for the lower, and about 28.25 on the upper. But the .685 comes in at 25.65, lining up with that lower line. In reality, for a pattern this big, the range, the 'box' as I like to call it, really was from 23-28, bounded by two 'sub-groupings', and it went right to it and got crushed.

It's important, I feel, to not ignore the bigger picture when fine tuning on the lower timeframes. Without seeing those key lines and the bigger pattern, and the way this thing has been using .685's lately (is that amazing, or what?), would have one too focused on the sub-levels and not seeing what is actually unfolding.

1014.25!

Still selling... or should I say

Still selling!!! 13.25. I love this market!

Within 2.50 points of the LOD. I don't think anyone, even me, thought that was remotely likely.

Now, you want to see something totally bizarre??? Chart the ES and the $VIX on 1-min charts, side by side. Look at the drop in volatility as the ES ramped. The ES then retraced almost .886 of the ramp, and the VIX, it didn't even retrace to the .300. Now, isn't that odd?

I left 15 minutes before the close and have to say that I didn't expect to see anything even close to such a drop in the last minutes of Friday's trading. Looks like somebody wanted badly out before the holiday weekend. Was this a big bearish 4PT from yesterday's low?

That's the one.