Here is the updated medium term chart in ES:




Lack of at least a bounce here following Friday's bullish 3D right into such an area would indicate that something more serious to the downside might be brewing here. Breaking the rising TL from August low (thick blue line) would only confirm this.

This time around ES looks much better so far:

Also on another note - LOD was neither at a classic 3D nor at the spike line, but the first thrust up reached the green ML exactly to the tick despite the prevailing volatility. This phenomenon doesn't cease to amaze me:

Earlier today ES reached the highest levels in almost 30 months, so it can not be weak here. Common up!

Interestingly today's rise started almost exactly from the same level as last Friday's debacle:





The situation in Egypt that started the sell off a week ago is much worse now and yet the market rises and not falls from the same place. It will do what it plans to do regardless of the surrounding events...

As long as KZ holds, nothing threatens the previous scenario:

roofer, I wanted to comment, but I just didn't get to it last night since I started student work right after the market and kept going until it was quite late, and I'm just stopping in now in here for the first time today. Your charts did inspire me to do a full FAS workup (and some others), and even add a few of my own things onto that layout. It was truly remarkable, and perhaps the best KT numbers confluence I have ever seen. And, it dropped like a rock off that this AM. I appreciate all the incredible posts you have been making. I'd say I particularly like these KT ones, but I really like them all. Plus, since I already know the KT methods, the other stuff is quite interesting to me, too, to see how you see things. Thanks!

Originally posted by roofer

jim -no comment either way?isn't the FAS chart a tribute to your methodology?

They'd like to close the ES at new highs for the entire 'bulls@$&' market today, as per usual for a Friday. That way they can gap it up and run it in the Sunday night GLOBEX/Monday shtick. I see no reason why they won't get the new high shortly, and the close at around the high tick. 'Everything is as it should be, in this, the best of all possible worlds.' In the meantime, it battles here at the best key downsloping line I have right in here. In 'the old days' I'd expect this to be a battle that might be temporarily lost. Nowadays all 'resistance' seems futile.

Okay, there is the break of my key line, as expected. ES now 1.25 points from the new 'bulls@$&' market high, set earlier today.

Got to say 'this is just too easy'. They got it within one tick of the new high. Took them into the after-cash, what a surprise. Just too easy... BTW, the last push was off an 1.000 ABCD to the tick, with an ABCD in the BC leg, at a .300/.447 overlap at a key line. At the risk of repeating myself 'this is just too easy'. Thanks, Bern-qwacke.

Who cares that the Chairsatan is committing 'Benocide' on the world's poor. As long as the stock market keeps going up and I make money, I could care less about those hundreds of millions of poor slobs far away. The latest report I heard (Nicholas Colas of BNY) was that he needs the S&P at 1755 by year end to make his numbers work. Think I'll go pile into some grain contracts and add some fuel to the fire, and make some money. Go Benny!

<sick, insane, frustrated sarcasm off>

I can't refrain myself from quoting here a fragment of famous Polish poem for children - "The Locomotive" by Julian Tuwim:

"...

First a toot!
Then a hoot!
Steam is churning,
Wheels are turning!

More slowly - than turtles - with freight - on their - backs,
The drowsy - steam engine - sets off - down the tracks.
She chugs and she tugs at her wagons with strain,
As wheel after wheel slowly turns on the train.
She doubles her effort and quickens her pace,
And rambles and scrambles to keep up the race.

Oh whither, oh whither? go forward at will,
And chug along over the bridge, up the hill,
Through mountains and tunnels and meadows and woods,
Now hurry, now hurry, deliver your goods.

Keep up your tempo, now push along, push along,
Chug along, tug along, tug along, chug along
Lightly and sprightly she carries her freight
Like a ping-pong ball bouncing without any weight,
Not heavy equipment exhausted to death,
But a little tin toy, just a light puff of breath.

..."

Have a great weekend all!