So, will this gap up and then start the run to that say 1425 area from my scenario last week? The time factor I was looking at said by Sunday night or Monday, but you all know I don't weigh the time factors that I do very heavily. Add in the sideways action for a few days and it has either coiled for a fast pop, or the time factor won't come into play at all. As I concluded last week, I thought the odds were perhaps 75/25 that this will head up to that next level, as opposed to this being a topping formation. We shall see soon enough. I'll post the early indications from the spot FX market when they become available.

It is interesting that Tim Knight (over at Slope of Hope, not a KT'er at all, but I think a very good trader) is looking for a substantial short-term drop in the bond bubble, which would imply a pretty big pop up in equities, hence lining up with my key scenario. He noted that equities have been up five straight weeks now, and eight of the last ten weeks. Talk about strong.

So, it seems primed for 'the big move up', and I'm fully expecting it. For me, it's about what it does at that super-super-key 1425 area. If that doesn't turn it down for a major intermediate-term drop, then I would expect a monster acceleration to the upside and a run for the all-time highs in quick order. Just my read.

Well, early indications have the Euro up a few pips and the Aussie (the more important one for this purpose) is down say 25 pips. That would imply a slightly down opening. But, there is just over an hour before the opening, so let's see how it develops. At fifteen minutes before the ES open we'll get the indications there. I'll try to update as things unfold.

This is mildly interesting:

http://slopeofhope.com/2012/08/illusion-in-the-wonderland.html

If they decide to beat this up a bit, and this is a big if, I'm watching upper 70's to lower 80's. One day wonder, straight there.

.886 on gap on 5?

Nice charts, rat. The really interesting things to me are: the NASDAQ smoked to a new high today, and how the ES is now gunning right back up again. Will it fail in here, or 'break out' to the upside this time?

And there goes the HOD and 'bull' market high. Once again: There it is!!!