Major indexes hit last week 1.272 of the April - July decline. And they did it in a very interesting long term spot, as pointed already by Eric earlier in the week:





Lack of any reaction to the downside here would be quite surprising for me.

UPDATE....

the esteemed oil analyst was dragged off the set during commercial break....why? because in response to being asked about the recent rise in oil, he responded by talking about double barrel shotguns and blt sandwiches and THE TRADE.... they thought he had lost his mind.... actually, he had become a member of the kane forum....

I saw many Roofer's posts here very early in the morning, but actually this is the first time I see our "machine that grinds" posting before 4am. Respect...

ES almost reached the lower boundary of Eric area above and turned down at a spikeline. I'm not sure whether all the conditions for The Trade were met here, but will observe the green set nevertheless:

From all my yesterday's ABCDs only the one slightly modified in Bonds has still chance to play out:

sometimes it is hard to let go off a good trade... but i could not stay short any longer in the face of this geometry.

First bearish ABCD after the turn played out as expected:

... but it turned out to be just a BC leg of a bigger bullish .382/.447 ABCD at an obvious TL:

.786 of the bigger ABCD was it and now we are back at the same rising TL:

We have a failed bullish ABCD and a move down that corrects just to KZ, suggesting that it may have some legs:

And you, too.

Al Kamego