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 ):

Crude just broke nicely off that slightly slanted up flat ABCD completing at 13:35 PM. I love it. Note the nice 'W2' once it rolled.

And look how it still follows our lines:

The ABCD I mentioned was a smaller 3-min one, you can see it right around your lower line there. On a 3-min it was just classic, and got all the way to the 2.236 off the pattern, to the tick. Just a spectacular intraday play. Of course anyone following the KT methodology on a the next timeframe up would likely already be short, as your chart shows.

Sixth touch there of that lower boundary line on the ES intraday. Essentially a 4 point range for 5 hours now. I'm expecting a break down any time now, but will it just be a stop snap fake, who knows.

Touch seven gave a small bounce and then it gave way, as expected. But, will it follow through on the downside now, or was that a trap that sucked in a ton of people, and now they gun it up? Time will tell.

Not a bad little drop to the next obvious lateral support area.

A 'retest' of the broken price flow would be at 79ish.

First it needs to handle the KZ with lines.

Here are the lines I'm watching now in ES:

Today's bearish KZ ABCD in Gold was forth in a row on the way down:

Lightning trade this morning.

Al Kamego