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:

Finally, now?

Originally posted by jimkane

Next leg coming now?

Hits the high tick and backs right off. Just no impulsive action. Probably they are letting this coil tighten, and then they'll make their move when it can't hold anymore. And it will be explosive. I miss my balanced market...

I'm not sure they can resist a multiple stop sweep of the range here before they move it. They love that game.

Jim - would you allow DB ABCD retracing so much of the preceding drop?

If you mean to the .786, sure, as a 'W2' it could come back in that much, especially if the lines support that area, as they do here. But, is this thing really going to go down???

3.25 point range for almost 3 hours. Sounds like yesterday. I'm getting ready for the upside breakout and the attack on that 65 high. Top of the hour is the Fed minutes, which will surely get things moving, I'd think, if they aren't moving already by then.

I know it's rather futile effort to look for a potential top in this environment, but if there is a geometry why not to show it?

Sure, go ahead and show it.

So, it did exactly what I had been saying (am I surprised???) and challenged that high at 65, exceeding it by three ticks. And the Fed minutes got it moving, as I suggested. And, as it has been doing repeatedly, it hits the area to the tick, or 1-ticks, or 2 or 3-ticks it, and then reverses like crazy. To where? Right where it started the run from. Silly, silly game players.

So, I think they'd like to get to around 68 half next. But that 1.128 and SL at 66 and three quarts might slow it down a bit. It would be a nice spot for it to check back a little, and give it the juice to pop up and over.

First area basically hit. These guys are soooooooooo predictable, in my opinion.

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.