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 ):

Bounce off the dual 3-min TL's, and failed to set a new high, then a 'retest'. Watch out!

So, why the potential resistance here? Look at a 120-min all-sessions TL...

So, what does it say when it breaks some obvious and key TL's, barely flushes at all, goes to the next simple and obvious TL just below and reverses, and then takes out the 120-min TL, all at the close on a Friday??? Doesn't sound very bearish to me...

As I suspected, and mentioned previously, this wasn't planning to go down yesterday, or today. And it didn't. To me, it's acting bullish as all get out. Maybe not. Maybe ticking above that 120-min TL will be a headfake, and down we go. Maybe this Sunday night GLOBEX/Monday sequence won't be another up one.

For now, though, I'm long side bias until the up move stops going up. I suspect that will be at new highs for the move, but who knows. I don't need to know to trade. All I knew was to be looking at every ABCD I could find on the long side, and there were plenty. I see five since today's LOD alone, all of them 'playing out'. I can't ask for more than that.

And there goes yesterday's HOD, so that's the new high for the move off the bigger low. Recall, again, when I started asking if anyone was dabbling on the long side. Part of that was to see if anyone saw the setup area at that low that I saw, and part was to see how people would use an intermediate-term area for intraday trading, especially given it may 'test' the area many times first.

Notice the '1-tick' reaction to that new HOD. Given the importance of that 120-min TL, and how obvious it is, I can't wait for the open on Sunday. One interesting possibility is a gap up and run, leaving the gap behind and people endlessly discussing that the gap should fill.

Lightning trade this morning.

Al Kamego