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.

A very nice cup is already there. Now a handle and up it goes?

Well, CSCO just announced, they beat estimates, but the market doesn't like some of the other aspects or the tone, and it's dumping nicely. The futures didn't follow, but they weakened slightly and stopped their up move. Now I'll watch to see if CSCO turns around and does an AMZN or AAPL, with the big drop down and then the hard reversal and new high soon after.

Somehow I don't see that here, but bullish sentiment is climbing daily, and every analyst on TV now is giddy with bullishness. One guy just said for next year the only thing he is debating is will it be a good year or a great year. Another guy said earnings are so spectacular he can't even believe it, and the market has only one way to go with earnings like that, and it's way up. Interesting...

The handle is also there. If such a classic pattern doesn't play out - that would also be a clue:

Well, I just got my short trigger on the 15-min ABCD pattern. Now we see.

Was this the pattern I posted earlier today?

Is something important happening that it drops so decisively after hours?

After a clear retest of the upper ML it dropped straight to the ML of a set anchored at potential Waves 1 and 2 down:

Great work, jarek. Yes, that's the pattern you posted earlier and that I was referring to with my trigger. My trigger was at 12.75 (fill would be expected to be a little lower), and the low so far has been 6 even. That's a great start. The reason, I suspect, is the much further breakdown in CSCO. They must not have liked the conference call at all. CSCO was down almost 15% at the aftermarket low there.

The key thing is what they do here, since, as you mentioned, the ES went right to a key spot. Is that it, or the start of something big off that pattern? I would expect a 'W2' bounce in here, perhaps, but what it does with that will tell the tale. This is very, very cool action.

It's difficult to see the current development as still the move off our yesterday's 15-min ABCD. But this ABCD could be just an AB leg of a bigger .685 4PT:



But in such case it needs to accelerate to the downside here as this would be the Wave 3 of 3 down

Is somebody playing games big time here? Second .685 4PT (this time smaller one) in a row?

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