So Friday's action didn't give us the answer to the question which of Kane ABCDs pointing in different directions will prevail and both are still in play. Here are the 2 sets I'm watching for earlier clues than taking out respective ABCD's highs:





Both were very well respected so far and should be watched carefully. The fact that the downsloping ML of the smaller set contained the bounce 3 times in the last 2 days might suggest that its lower ML could be the next target. At the same time the last action might be considered as coiling around the ML of the bigger set and once the drop starts it might not stop before reaching the downsloping ML of the bigger set around 1030.
On the opposite side if we get the usual Sunday night - Monday push to the upside, then upper ML should be the target and last high would be in danger.

Kane classic:

And this W3 of the move off bullish ABCD above was good enough for taking out the downsloping ML at 7th (!) attempt:

So, jarek, you nailed the endpoint with your double 3D read, and you got the pickup point with the ABCD dead on, and saw the 'W2' spot, which stayed within the expected bounds (supported by that key line that you showed). As you said 'Klassic Kane'. Nice work. Those charts are just a 'Klassic' study of many aspects of the KT methodology.

P.S. I think it was Duane that coined the use of the K in 'Klassic Kane'?

Well, I don't think anything can stop new highs for the 'bull' and a rise through all the August turning points, and through Sept and Oct, but I'm watching 1103 next. After that 1115. But you'd have to be nuts to expect any downside beyond quick little drives down to suck the suckers in. Read this and you'll see just one of many, many games going on. Totally immoral, totally illegal in my opinon, but as Billy Jack said: "When policemen break the law, then there is no law, only a fight for survival."

http://www.zerohedge.com/article/tradition-mindless-stock-ramping-fed-pomo-days-back

http://www.zerohedge.com/article/morgan-stanley-16-out-16-fed-frontrunning-projection-fed-announced-schedule-usts-be-purchase

It would be curious, and interesting, if they could do some selling off this area. But I'm not expecting anything but a small checkback and then they just manipulate it right back up some more. I essentially never fight strong uptrend days in this controlled market. But, if it were going to sell and not make it to my next area immediately, this would be the spot I'd think.

If they were going to come back in, this is the spot I'd expect it...

Originally posted by jimkane

If they were going to come back in, this is the spot I'd expect it...

Is this because of this ABCD of 'last resort' for a small correction?

Yes, and a .236 and .300 overlap (you showed the .300), and an .886, and some other things. But I could also see 92 for some other reasons that would need the detail of one-on-one to explain. So, watch this little bounce closely, and if it rolls watch 92ish next.

Looks like the time for a bigger correction might have come. And to no surprise this is a drop exactly off a division line of our bigger downsloping set:

I'm watching the area of 1072.50-1074.50 next, if it gets there. This 71.50 here is a minor area, and may be close enough to the above to finish it. Let's see.