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 ):

Bearish Flat ABCD in KZ still an option in Gold:

And ES is finally breaking the channel to the upside after taking out today's bearish ABCD. But shall we already assume that this is W3 up from Friday's low?

This is still a possibility but these 3 legs in potential CD leg do not add credibility to this setup:

What's also interesting is that current HOD lies exactly in the Kane Zone of the whole Nov 9 - Nov 12 decline:

Although it took some time, the green set rule was finally satisfied:

I just got on the forum right now, and many functions don't work. I can only get about half the sites I usually visit, the rest are down. Doing ping traces shows multiple dead hops on all of them. Yesterday Amazon was down, today Safeway and download.com, and eBay is giving my better half fits. I also can't download from certain data sites, and can't get in to one trading program.

It doesn't seem to be local, given the bad hops all over the place. Seems like a major Internet problem. This has been on and off for several weeks for me, but today is just insane. Anyone else having problems? The issue is on all my comps, even with modems switched out. I'll try to check my neighbor's comp to make sure it isn't local but outside the house. Just the craziest Internet issues I've ever seen...

BTW, great charts, jarek, wish I could participate in the discussion.

I haven't encountered any problems. Looks like everything works fine on this side of the big pond.

Nice acceleration through the green ML and immediate trip to the next obvious target:

Kane TD ABCD completing at 0.382 Fibo.

Good Trading,

Al Kamego

Here are today's bearish KZ ABCDs:

Lightning trade this morning.

Al Kamego