Looks like we may now safely concentrate on the upsloping sets instead of the downsloping ones:




The history likes to repeat itself and similarly to last year the July low at 38.2% was likely it. We still can't exclude a possible big flat that would retest that low, but Jim's scenario of "up, up, up and away" is in my opinion much more likely. In such case after a clear acceleration through the rising ML, the upper ML at 1340 should be the next target.

And yes, I think it was worth taking that trigger off the area jarek showed and, if momentum built (it did), holding it into GLOBEX. This may just be a short-covering pop, but it may also be the start of another leg off that ABCD. It sure looks like a sea change has happened, but I don't want to miss moves, either, based on potential assumptions. Anyway, watch closely right here.

The most important thing to understand, I feel, and mind you this isn't a technical aspect but a 'fundamental' one, is that if/when Europe goes ka-bloo-ey, and right now Ireland might be the fuse to set it off, the rush into the dollar will be huge, epic, in my opinion. That means, unless correlations break, ES way down, comms way down, gold way down, crude way down.

I can see gold holding its own and that correlation breaking, because it is a flight to safety possibility. But, probably it would drop too, just maybe not near as much as the dollar rise would indicate. In other words, buying may push it up to some extent, mitigating the drop from dollar repricing. We'll see. But it is only a matter of time until Europe implodes. And the games will go on to cover and hide it. But that has its limits, and someday we will see those limits hit. Keep in mind, all the above is just my opinion, my read.

Intact 'Kane Zone' on all upside corrections is still pointing to more weakness ahead of us:





Failed bullish DT ABCD is only confirming this

Kane Klassic in Gold:

Awesome charting, Jarek.

Al Kamego

Important spot to watch:

I'm not sure if this still could be deemed as bearish ABCD but .886 at line stopped it dead so far. Please note that it was also .447 of the whole decline so far, so break of this high would also break the bearish 'Kane Zone' streak:

Look at that! All started when that treasury auction went off.

At least three nice ABCD's on the run up today. Sweet.

The ES pattern on the 15-min is what's known as a 'boomer'. It should explode out of it, and soon.

Thanks - it seemed to me, that they were somewhat closer. Must have been too tired yesterday...