Jim must be very, very happy, because the futures opened... down. Just three points now from the low for the entire move down. Can't imagine they won't try for that. It should bring on a nice flush down, but nowadays they may defend it, or guard against a big stop run, who knows. I still think they may gun this up at some point, but maybe not. I just know I'm not marrying any positions the way they like to come in.

Now, with that nominal new ES low there this may be in bounce mode. Watch this 36.25 here for the first initial clues.

On the intermediate-term I have an area around 1280-85, and then around 1260-65, but really it's just layers and layers all between those two areas. So, 'somewhere in there' I'll be watching for something to happen. If that area gives way, there are a few things below, but it could really drop if there is no support there. Although I expect a 'big bounce' in here, it may just want to get down there ASAP, to fool all the 'millions' of 1320-1330 bottom callers, of which there are, as I said before, so many I can't count them all. It's truly profound.

The timing window for this is last week of May to first week of June. This is not a precise timing factor, like we see posted in many other places, but just a window where everything comes together that I will be watching.

Now just about 10 points off the LOD. I'd say the bounce has started. Let's see what they do when Europe opens in a minute...

Nice pop on the European open. I'm liking this. Despite my love for the short side, I had an idea a bounce was coming, and 'that be the side to be on'. I never get married to one side or any position.

Notice (especially my students who I have discussed this with) what crude, gold, and the Aussie look like on tick (or 1 or 3-min) charts, next to the ES chart? Notice anything? What a correlation. 'Risk on', all or nothing. Game on.

BTW, watch the ES here at 43.50-44.25 (center of area), as it's a key one.

Lots of caution here...

Okay, if this current area is overcome next there are scattered sub-areas between 46 and 48, so I'll say somewhere in there is what I'm watching next. After that 'nothing but blue sky'.

The last area was indeed overcome in a big spurt, and the next level hit. Now we really see. I hope it can overcome this area, too, but I'm not so sure it can, at least not without a big checkback. I can't wait to see. I'm fading out, though, so I probably can't stay awake much longer... Crack of dawn comes early on the West Coast...

Hey, I just realized I crossed 15,000 posts a few posts back. Wow.