The overnight drop could be seen as CD leg of a KZ ABCD right to the lower ML of our upsloping set:

I just realized the low end of the lower area mentioned above, bounded by the 1.272 at 58.50, has already been hit at today's HOD.

Exactly, and the new downsloping set looks better because of its multipivot ML:




But does it make sense to try to call even a short term top in this environment?

Just heard a cool bull tip of the day on TV. As soon as jobs come back (they say this like it will be any second) the housing market will come back full throttle plus some more, and release all that pent up demand, and 'go on a tear'. Wow, I need to position ahead of that. I'm going to look up some homebuilder stocks and load up in the retirement account, since this all sounds very plausible. On the other hand, Ilargi over at The Automatic Earth thinks home will follow the Japan route, and the totaly decline will be 90%, as deflation kicks in. Nah, I think houses will soar! Maybe I should buy some cheap houses now while they're still so cheap.

Keep an eye on crude here on a tick chart, as it's dumping a little. They should pick it up right here, but let's see.

It finally broke below green ML support earlier today and what happened next could be just a return move to this line:

Interesting development in bonds as well - the bearish 4PT is "hanging on the ropes":

The ZN is just going straight up. They rigged the auction today (in my opinion, because they knew treasuries were about to break down) and that caused some short covering, and then the gov jumps on to further enflame that. Just my opinion.

The Euro is also going nuts, too.

And failed 4PT may lead to an explosive move in the other direction...

I would say yes to that. The only thing is the ZN just gave me a hint, a little flash, that it may be done (for now) at that 120-115 high there. Probably not, but it just flashed me this 'vibe' that it may want to come off that high. We'll see. It's just something I'm alert to.

This high sits to the tick on the green upper ML. I also changed the upsloping set for one better reflecting recent price action:

Look at that ES finish!!! Drops like on rock on volume, they come right in for it, and they gun it up on massive volume to take out the key downtrendling TL, the HOD, the GLOBEX high, yesterday's high, and the previous GLOBEX session, all in one shot, to close it on the high tick! And they do all that with a total range for the day, including GLOBEX, of just 8.25 points!