Here is my chart of the weekend:

Nice one in Silver (although not a 4PT ):

In Crude a "lame duck" 4PT with shortened CD leg

... and we know that 4PTs like to precede strong W3s...

Yes, they do. If this ES gives way here, watch out. Next areas down lower are that 16 area, then 1300ish. If this is a 'W3', then much lower, 1280 or lower.

But the daily range is now 22 points, and that has capped intraday moves lately, both up and down. We may get a monster expansion of that on panic, but short of that, 22 points from one key area right to another, well, that 'normally' does it.

That frickin' Euro, right off a 1.000 ABCD at .447 and key line, already hit the 1.272 and lower //, some two-hundred and seventy something pips in one shot. Unreal.

Originally posted by jimkane

That low at 30.50 was right back to my line that sent this up last time. Extended daily range. If this can't bounce it, it could get hammered. I can't imagine it at least doesn't stop here.

Strong bounce exactly off your spot:



But bulls still have a lot left to prove

Yes, and this 'should' have produced a big short-covering rally, and hasn't. Technically, I can't imagine this not bouncing. If it does the range chop at the low end of the daily range, that wouldn't be strong. But, look at how this has been acting lately. Goes to an area, reacts violently, chops at the next area, repeat. So, it may chop here the rest of today, then explode up Sunday night. I'm long side bias intraday now though, in case. I'll go neutral as soon as it starts chopping... Or bearish if it forms a pattern and rolls over, or just rolls over. If it just rolls from here, though, I won't likely be able to get positioned, so I risk missing a bigger sell off.

Originally posted by jimkane

That frickin' Euro, right off a 1.000 ABCD at .447 and key line, already hit the 1.272 and lower //, some two-hundred and seventy something pips in one shot. Unreal.

I'm not sure if I should show all the ABCDs you are mentioning, or leave some blank for self-study purposes

35.50 here shouldn't be such trouble for this if it plans to move up. It should give way in here soon. If not, that's a clue.

And now Druckenmiller joins Gross and Grantham. Maybe it just took one person (Gross) to say out loud the Emperor has no clothes? At some point the bond vigilantes will overwhelm the Fed. Maybe not yet, but some day...

http://www.zerohedge.com/article/druckenmiller-calls-out-treasury-ponzi-scheme-its-not-free-market-its-not-clean-market-ident