We have a nice potential double bottom that could play very well into the usual Sunday night - Monday strength. This 100% retracement of Wave 1 of the move off our bullish ABCD doesn't fit well to the scenario of a really strong trend up starting here, but the move to the usual area off this ABCD should be good enough to deny all the Wave 3 callers right away:

I'm not sure whether the last correction can still be treated as ABCD, but the main lines were respected with this potential triple bottom:

It is rather interesting, how they came in within one tick of the previous low and gunned it right back up again. So, we have dueling patterns, and ambiguity. In other words, things are 'normal', they are playing their games, and will try to postpone the decision as long as possible.

Key spot right here for a decision. Watch closely what it does right in here.

I'm watching 56 next, and at the top of the hour we get a key Fed report, so keep that in mind. 56 and then the report?

Understand, this is still trying to decide on this key spot right here, and it may decide to sell long before the top of the hour or 56. I was just saying, if the grind up continues, that is where and when I am watching next.

Originally posted by jimkane

Key spot right here for a decision. Watch closely what it does right in here.

It never was able to handle that area, even with a few strong attempts on the report. So, so far it is prefectly on schedule for more downside after the obligatory 'W2' bounce. We'll see. It may just range chop instead. But I'd sure love a swift move to new lows.

Originally posted by jimkane

...so far it is prefectly on schedule for more downside after the obligatory 'W2' bounce...

Are you thinking about the potential W2 of the move off this DB ABCD?

Yes, that's the 'W2'. It's a possible scenario, at least.

Now, this is in the 'Game Zone' here, and if they plan to not let it go, here's where I'd expect a manipulation bounce. So far, it has started, and formed a little bearish ABCD in here. Now we see. And I think what we will see is more upside...

If it does roll down in here (I just can't see it...), watch for this to complete 5 waves down with a little roll off this ABCD, and then start to bounce. In other words, some continuation here will draw a bunch more shorts in and increase confidence, and they will be trapped. Just a thought if this doesn't keep squirting up here. Point is, I feel they really want to gun this and trap some bears, and I'm just thinking of how they may get them. This won't necessarily change the mid to big picture we have laid out.

I still have on my longer term charts the line at 1040 - the level which was so vigorously defended in May-June timeframe. Hard not to notice that this might be the same battle this time around:

Great work, eric, right to your area.