Here is the longer term bearish 4PT we've been talking about lately:




Both breaking it to the upside and respecting it should result in a strong and sustained move in the given direction

if price gets over the geometry,,,,,,,,,,,,in the light of these charts, the recent relative weakness in some tech stocks makes sense... the other indexes had to rush to dance.....

our tools are at their best when they warn us the crowd is looking the wrong way....the logic of the tools simply suggest there is a major hurdle to overcome directly ahead...

Originally posted by roofer

...the logic of the tools simply suggest there is a major hurdle to overcome directly ahead...

Kane methodology confirms this fact as well:

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

Hurdles on the way up are being taken out one after another...

It's almost 50 points up in 2 days - not bad. It reached the .886 of the whole drop at lines confluence, but I wonder if anything is going to stop this before reaching new highs for the year...

Thanks for the prayers, roofer, it got me my next leg up. Everything is now, as you pointed out, at the real proving stage. Now we see.

Originally posted by roofer

i''ll pray jim's right...

Great charts, guys.

Crude still moving up strongly. Unleaded is just insane. Another intraday ES leg coming? Those comms are on fire. Look at wheat and cotton today. Silver is just looking monster, and platinum is up big today. Inflation is the way. The FED wins, the middle class is destroyed.

Unleaded just 8 cents from an over 26-month high. Get ready at the pump, it's time for another big runs up in pump prices. I saw what that did to all my neighbors last time. Somehow the FED thinks this is going to be good for the economy???

Last thought to better explain the above. Here's what the conventional thinking is. Crude and the comms start to rise. Pump gas rises and all this puts a big crimp in the economy, and the prices drop due to the dropping demand of a weakening economy. Crude can never get to $200 (or $1,000) because demand will drop tremendously way before then. Now, here's what the conventional thinkers are missing.

Money printing causes a repricing of comms higher, and the excess cash flows into hard assets, giving the double whammy to the rise. Once this trickles down (and pump gas and grocery shelf food prices are the two biggest ways I feel this kills the average American), the economy will slow rapidly. The FED will respond with more money printing, which not only steals whatever tiny little bit is left of your cash savings, it will reprice the comms higher, and feed excess cash into hard assets, with even more vigor, as the debasement is obvious. Demand drops, and prices rocket higher.

This is the acceleration phase of hyperinflation. Wages don't keep up, savings are destroyed, the economy gets a lot worse, and the FED prints more money. The loop is complete, and it feeds on itself. This is what has begun, in my opinion, and nothing in heaven or on earth can stop it. It reminds me of an old TV commercial, which showed a guy on a merry-go-round type thing, and he was saying 'I have to work longer, to make more money, to buy more cocaine, so I can work longer, to make more money, so I can...' faster and faster, until he eventually explodes I would guess.

That's our system right now, and they've gone too far to stop it, change it, or ever admit they were wrong. They are going to blow us all up, and we are all going to stand by and watch. Mark my words. And although this is just one man's opinion and nothing more, you know my track record on reading things...

Have a great weekend.