We have the biggest drop in 2 months right after the breakout to the new highs for the year:




(in fact only after preparing this chart I noticed that all the corrections on the way up were so similar in size...)

In my opinion the odds are high that this was a fake breakout and at least the recent leg up should now be corrected. I'll stick to my bearish stance until the bearish ABCDs in the Kane Zone stop to be respected (and that might happen as soon as Monday night ):

Here they come?

Well, AMZN hit a new HOD there, but mostly there is just no conviction at all. This thing has been dead since the first hour. Fortunately, the ES had a great setup that triggered right near the open to potentially catch the RTH blast up. If one was in the time zone to play overnight, there were some setups there, too, for an earlier entry.

Point is, a failure to follow here could very well lead to a crush. Maybe it just chops in this range, and does a silly burst up once cash closes, but the odds increase for a big sell if they can't scare the shorts in here and keep them from leaning on this.

Watching 93, 91.50, and 89.50 next.

I'm not saying I think it will drop to there, only that those are the levels, if it drops, that I will be watching for clues.

I'm seeing 'trendline creep' on many stocks on say the 5-min, and that implies a potential imminent burst to the upside coming. Just an observation.

Since these stocks have been creeping most of the day, by 'imminent' I don't mean any second, but some time today or tomorrow morning. If the upside pressure holds. If not, then these 'ledges' below them all may give way, and a huge flush could start. It's looking more like that is about to happen any second. Watch GS for an early hint.

The bigger ABCD at TL and 44.7 at 49.52 will give a big clue in ABX.

So far, so good. Looks like roofer's plays are going to reward him handsomely. Nice job.

ES 93.50 is really being 'seen'. This is within the range of my first area. Keeping an eye on this. Watch ABX and GS here, too, for clues, or any key stock, like AMZN or AAPL.

Originally posted by jimkane

Watching 93, 91.50, and 89.50 next.

Lightning trade this morning.

Al Kamego