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 on the downside I'm looking at 13.50 and 10.50-9.50.

.886 and deep in the Game Zone. This is it, folks. Do or die. Now we see. If this can't bounce it, I'm getting ready to 'ride until close' and looking for 13.50 or 10.50-9.50...

Over the last couple of days there were many warning signs for the the bulls, who are in real trouble here: upsloping set left for good, last TL broken to the downside and backtested and now a potential H&S forming:

Bulls really hanging on the ropes here:

Exactly, jarek.

Keep an eye on this low here, they love to explode it within a tick of the low, sometimes the exact tick. Just in case they are going to game it, which I can't imagine they wouldn't. Bottom line for me this is a management mode spot, just waiting to see if they give my lower areas or not. They'll do what they'll do, all I can do is act on what it does, according to my plan.

New low by a tick. Explosion up now?

The curious thing is that they haven't taken this opportunity to ramp it, especially with jarek's line in the above chart to support the concept. That's rather curious.

The way this thing has been acting I may switch my hours to 3 AM eastern until 11 AM eastern, since that's when most of the real action is lately. Just a thought.

Schiff sets should be ruling in this environment. I would expect that if they want to gun stops they would do it to 1.128 right at the line from another Schiff set:





But so far you are right with this one tick phenomenon.

really great stuff Jim. I know just another day for you and the KT methodology. I thought there were some great setups if one had the context. Great triggers up and down.

Is there any force on this Earth that can stop bulls?? Looks like Jim might be right with his call of up September, up October, up November and so on and so forth...

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