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...

So it is now almost 100 ES points lower than last Monday after a move where the biggest correction was a mere 17 points.

Wow, straight up 9 points in a flash. This thing is moving incredible amounts in very short periods in here. What a volatility expansion.

BTW, jarek, I agree completely with your assessment of the weak TD there, that's why I posted to watch that .685 area, because it seems to be using them lately, as a sign of weakness in this case. Good job.

Anyone recall that 'W2' setup I mentioned in the DX? It's playing out. Very nice.

Notice the retailers ($RLX), which led on the way up, just going sicko, are leading on the way down, now not only below the May low, but today it traded below the Feb low (as did the S&P). The homebuilders index ($HGX) is also a leader on the downside.

My yesterday's set from "unfinished" TD ABCD is guiding the price action pretty nicely:

Could this have been a 1.902 DB ABCD?

Or maybe was the last rise just a CD leg of a bigger bearish 4PT?

We had a trend day yesterday..no follow through in globex and the most talked about area is giving no reaction at all and lack of interest. I would have bet a little short covering and the fact that it is not happening to me is making me very cautious.

Good charts, Jarek.

Today I saw a Kane Pattern-Line-Fib in today's preopen similar to the one I saw in the preopen yesterday. Price reversed on today's Kane Pattern-Line-Fib ABCD at the confluence of:
ML
ML Set Division Line
3-D
200 SMA
Upper 21,2 Bollinger Band
Very close to 0.500 Fibo Retrace of GLOBEX Lo-to-Hi.

Good Trading,

Al Kamego

The market looks weak yet none of the bearish setups above were able to turn it down. If it wants a bigger correction now, here is a nice setup. Note that the possible 4PT in the BC leg was again .685 to the tick:

That's the one.