Here is the $SPX equivalent of our longer term bearish setup in ES:





The importance of the current market position is even more visible here, because Friday's high was exactly at the upper ML of the downsloping set at what looks as a possible 3D at the spike line.
If this breaks to the upside than we should witness an acceleration of the upward move, since there is nothing but air above:

And yes, the little overshoot to the downside does stretch this pattern beyond the '1.902 DT' and call it into question if it even is a pattern at all. The area is pretty clear, though. I'm waiting to see if they can do anything with it, or if they do, if it's a bounce and roll. The bulls need to be very careful in here, I'll say that.

I'm thinking up strong until close, closing well in the positive, is what they have in mind now. We'll see.

I was out for some time and missed a new green set doing its magic after a very clear 3D into lines confluence:





Now what?

Well, I'll be the first to admit that the strong up into close that I really thought they'd do didn't happen at all so far, and it did one of the things I said to watch for, for clues, the bounce and roll. Goes right up to a spot the bears would use, and they did. That was part of my reasoning behind that comment, it was right at the bear spot, and after so many rolls off bear spots, I figured the 3D into a key area would give them the juice for the 'breakout'. No deal.

Although this very well may not go down much more in here (it could, though), the bulls are showing they have no juice at all. That could change with one call from the moneyprinter saying another trillion is available for today, who knows. But technically, they have no juice at all. Watch this as it toys with the Game Zone once again. Keep in mind, a failed 3D into a key area is no laughing matter...

Originally posted by jimkane

I'm thinking up strong until close, closing well in the positive, is what they have in mind now. We'll see.

Originally posted by jimkane

...The area is pretty clear, though. I'm waiting to see if they can do anything with it, or if they do, if it's a bounce and roll. The bulls need to be very careful in here, I'll say that.

I will say one thing. You'll hear me scream all the way to wherever you are on this planet if this 1-ticks and explodes up, off this 1.000 ABCD. (I normally wouldn't consider this as a 'W2' properly positioned ABCD if it goes below the low there, but with the tick games they play, I still think it something to watch here.)

This still could be treated as a checkback of this upper ML, but this is not the kind of behaviour one would expect after a decisive break of an important pattern:

Watch this 62.50 very closely, it's the heart of my next key area in here.

That, my friend, if it closed here, would be a classic snap back reversal pattern.

Originally posted by jarek

This still could be treated as a checkback of this upper ML, but this is not the kind of behaviour one would expect after a decisive break of an important pattern:

Click image for original size

I can't wait to see if the bears give up now as the bulls launch one more time. If so, that nice-looking snap back reversal pattern right at our key area would be spoiled. The bears are just so weak, I can't see them holding the bulls for long. I wish they could, but I just have no faith in them...

This rocketship has left the launch pad.

And there's the close, 75.50 was the high. I'd still say that's close enough, it finished a lot closer to my area than any other place it could have finished. And followed the lines almost like a script. Oh, and BTW, that was a positive close for the ES.