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 ):

Now, if this plays out, it will be an interesting example of this. All this bullish TL creep, and it breaks down, below the ledge, as the ES hits an area, and then it snaps up. Probably just a 'retest' of the breakdown, and flush it goes. But if they did suck in shorts and then gun it over the TL, that would be something, especially into the close. Watch for the roll, it's the most likely scenario, I think.

Great job on GS and ABX, roofer.

So, the ES did pop up off my first area, hitting 97.50, up four points off that, partly upon hearing the DELL earnings. This is going to be really curious, what happens from here. I can't wait to see.

Originally posted by jimkane

...Maybe it just chops in this range, and does a silly burst up once cash closes...

Nice call Jim!

Yeah, that was my first area, I had it as 93.00-93.75. I'm waiting to see once GLOBEX opens back up if we see the new high or not. I thought the DELL earnings might drive it, but the SPY after hours is weakening. We'll see.

jim-just traded the tools.. to be honest,felt more like luck than skill today....seemed like one of the strangest days in the market i can remember....

And there's the new high for the move in the ES, right off that ABCD. Will wonders never cease.

Crude also hit a new high for its move.

Price reversal this morning at 0.685 & 0.382 Fibo, with 3-10 SMA Osc hidden divergence, & Simple Line, but no 0.886 on RTH at the confluence. 0.886 Fibo retrace at this spot was on GLOBEX chart, however.

Al Kamego

Watch this 3-min TL here in the ES...

Lightning trade this morning.

Al Kamego