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?

Bulls managed to bounce it from the 'Game Zone' and a line from set on 1-min chart above. But do they have anything left?

Originally posted by jarek

...But do they have anything left?

They did but only to the 'Kane Zone':





The green ML is waiting...

Just spectacular work today, jarek. Sorry I was away from the forum and didn't comment in real time.

This magnet is sooooo strong:

The price action finally left our 3 weeks old upsloping set. Bulls last hope - the uptrending TL was however defended during the first approach:

I'm not sure whether Jim would like such BC leg, but in my opinion we have a bullish 1.000 ABCD with the D point at LOD:





If it fails, we will have a final confirmation of bears taking over, at least in the short term

I like that ABCD, as far as structure. I see it as right in the middle ground between an ABCD with a TD in the BC leg and a classic Elliott abcde. Either way, I like the structure. Context-wise I think it will only play out to new highs if the manipulators plan to run this without the much-needed higher timeframe checkback first.

BTW, that's a very key TL in red in your previous chart. Watch that closely.

I wonder what it will do with this flat ABCD here???

Our Fed rule suggest that it should go up, since the move into the close on the Fed day was to the downside.
But this rule wasn't that effective recently ...

Originally posted by jimkane

I wonder what it will do with this flat ABCD here???

A small pattern against the big one. Decision time:

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