Together with Jim I'm in the inflation camp now and believe that March 2009 - April 2010 rise was the W1 of the new multiyear bull market. The question is: can it move up from here with no looking back or it needs to "refuel" before commencing W3 up in earnest?
From what I see on various blogs and sites there are still many W3 down callers despite yesterday's taking out of August top by SPX. The chances are high that many others will join them soon if the market starts to fall impulsively from here in the following scenario:




At the end of such bullish ABCD the market should be ready for a major move up. Especially that those W3 down callers would be allowed to hang on for many more months to come if the most probable scenario developes:




Could you imagine the amount of fuel they could provide in such scenario?

And we see it is strong.

On a daily/weekly the INDU is getting right into a very key area I am watching.

The thick red line is a TL through 2007 and 2010 highs:

Originally posted by jimkane

And we see it is strong.

But isn't it too strong to remain sustainable?

Two bearish ABCDs in a row haven't happened in ES in a while:

...but looks like only bullish ABCDs are valid these days:

And to no surprise this one plays out nicely in the matter of minutes:

On our old upsloping set we may observe something which is reffered to as fade - every top is further and further away from the rising ML:





This is definitely a warning sign for the bulls

I recall that such double 1.46 has its own name in Roofer's arsenal:

Nice bearish TD right to the 'Kane Zone' on 1-min:





This starts to look better and better for the bears

Right back to the line. Totally not able to handle that area. Very surprising.