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 ):

Interesting how the cash close is right at this key area.

And the after-cash brings an initial dump off the area, right to the KZ. As I'm wont to say, 'Now we see'.

Another Kane Pattern-Line-Fib confluent with a Trader's Dream. Wow, what a day!

Al Kamego

reply to jim...i had two things in mind.... one, i was off trading bonds based on .886 setup... two, no i was not thinking counter trend... i am no fan of elliot.. but price action in blue box in chart below was not kane and said to me elliot 1's and 2's.... thus the price action off the traders dream/lightning was expected to be a 3 of some sort....thus still need the 4's and 5's to complete initial swing... thus i stayed with trade.....

fyi- bond trade was a day trade....gone from trade on close...

Another one to our recent collection of bearish KZ ABCDs:

... and in Gold:

Jarek,

I want to thank you for getting me to thinking in terms of Fibo retraces in the GLOBEX sessions.

Thanks,

Al Kamego

You are welcome Al

What an exciting day in ES!

Lightning trade this morning.

Al Kamego