Not much to add to what was already told here about the importance of the current area. One more think I noticed is that the recent high in $SPX was exactly on the upper ML of an important Schiff set based on Feb-Apr and Apr-Jul swings:





Friday's morning high could have been just a test of this line.
From how it all sets up we may assume that coming move in either direction should be strong and sustainable.

Dropping hard off 82.25. Hmmm, that's odd. But, we all see what's coming up in here, so I'd be far from sanguine it will drop much more.

Originally posted by jimkane

Now, assuming it doesn't get '2-ticked' here and drop like crazy, the areas above I am watching now are 81.25-82.25 and 84.25-86. As for the latter area, it could be as low as 83.75, and the upper end is really 85, with one factor (not just another Fib) at 86. Think areas, not exact points.

So, I doubt it will mean anything, but the DX just hit a key line there, for a non-structured possible 'W2' of the lowest degree, off the big key area. And the reaction off that drops the market there. But, is the DX really going to make a big turn here, two weeks before the election? A big market sell-off, right now???

Okay, there's the base to give this traction for the area just over 84.

Now, imagine it gets there, then AAPL jumps +30, or +50, where will the ES go???

There's the new HOD for GOOG.

Well, well... AAPL -20 instead of +20. Do we have our sea change starting here?

That's rather what I was expecting may happen. They knocked to cover off the ball, I mean hit it way, way out of the park, even surprising themselves, and the stock drops. IBM hits a new all-time record high, and except for service contracts, also hit it out of the park. And they are dropping hard. Hmmm, point being, did GOOG rush to the dance, being the laggard, while AAPL, IBM, they were at new all-time highs. Now it's over. Just a thought...

On the other hand, most times when this happens they take it as a great buying op at lower prices, and just gun it right up, and tomorrow it may be like it never happened. I think what I'm seeing is this thing is priced beyond perfection. It lives from fix to fix. QE2 is priced in, super-monster earnings are priced in. What will it need to get the next push? Can that process last??? Super high bulls, VIX record high bearish bets on it, and so on.

Watch that ES in here, it's starting to ramp...

So, that 82.25 dropped it 11 handles after all. That's pretty cool.

Could this have been yet another bear trap on this relentless uphill climb?

It looks the most to me like a complex topping formation.

If this low 60's area gives way (which sits right on top of the last topping looking formation that blew out to the upside), that might really get it flushing out.

Okay, what a place to close it, once again right on my area. How often do they do that? I still think the odds favor the bulls, but it sure would be nice for these technicals to play out and the big areas to send this way down. I can dream, can't I? I may take tommorrow off from the forum, I need a break, since as you can see, I tend to post a lot. If so, I'll be back as soon as I feel 'rested'. I may just watch you guys, but when I do one of two things usually happens: no one posts and there is nothing to watch, or, I just get sucked in and post anyway.

I may make a few comments today, for example, if/when this blows out my area to the upside in after-cash or in GLOBEX...