ES clearly likes to close at a key area as Jim pointed out many times recently:




Friday's breakout after a trendline creep was rather unconvincing and the green set could be still in force. However the journey to its downsloping ML would be rather uncommon taking into account the time of the year...

And yes, the ES is right back to those same upper set lines once again, so I am ready for a downdraft. It seems unlikely they'll let it go down at all, but I'm ready, in case the technicals prevail.

ES 1.50 point range for two hours. Nice.

Zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz.

NFLX is very interesting in here. Bullish ABCD hits into a key area and it starts up, but then it does a smaller bearish ABCD, right at several key lines, Fibs, and so on, and that stops it dead, where it now sits. Decision time. This is perhaps the most speculative, hyped, and overvalued stock out there (along with PCLN and a few others), but that doesn't mean they won't run it up more. To me, it all comes down to what one thinks about the market and the Naz in here. Anyway, this one is a good case study. Watch that smaller bearish ABCD spot for clues.

I suspect the ES should wake up any time now and explode up. Let's see...

LVS just did a nice ABCD (two days per bar traded timeframe), and has done a typical first thrust right in here. My students should fully grasp this. It is a good example to do some real-time management practice on. I hate LVS, and can't understand why it didn't go bankrupt, but the money pump must have saved them, and now it's up over 4,000% (you read that right) since the low. Hard to think that each larger correction will keep sending it up higher, but it was a nice setup...

PCLN two days per bar traded timeframe near flat ABCD in here, with an ABCD in the BC leg. Can't wait to see if the market corrects, or if all these shallow ABCD's I am seeing are going to drive it up another leg.

I'm thinking the bank stocks are on the verge of a monster 'breakout'. Sounds pretty sick and twisted, huh? I agree. But look at WFC, one of my most hated companies, with GS, JPM, BAC, C, and MS. I can't deny it looks like 'the big boys' are about to run them up big time. Just a 'hunch'.

ES starting to stir. Upside pop coming soon??? Methinks.

Midcaps about 16 points from a new all-time high. Unreal. Midcap companies are perceived now to be more valuable, with all that's wrong with the financial system and the world, than before we had any idea there were any problems at all...

And there's the break in the ES. What a surprise.

Here's my look before the pop:

:-|

Here's my look after the pop:

:-|

Big surprise. Now we look for to see if it was a 2-tick game.

Okay, another spot on read. Made it up to 53.25 so far, right back to the price flow. Not a claim, but an observation supported by posts in here: made the read going down, made the read for the terminus, made the read for the long side. Not bad, epsecially for a crap action day and the S&P at a 17-year narrow range.