A bout of weakness today would likely bring the futures down to 907.70, a Hidden Pivot that’s not worth bottom fishing because of its close proximity to a visually obvious low recorded  last Thursday. Its midpoint sibling  lies at 916.50, but that number too holds little value for traders. My benchmark above is still 964.10, since a print there would cause the hourly chart to crackle with energy.  The first hint of a strong move in that direction would come on a decisive thrust past 932.30, another hidden resistance.

The futures retreated sharply after topping less than two points above the 769.00 rally target identified here last week. Are they now about to plunge to 702.00, a possibility raised in yesterday’s tout? We’ll be better able to judge after stocks open this morning.  Although the selloff created a bearish impulse leg on charts of 10-minute degree or less, it’ll take a decline to at least 738.90 to achieve this dubious feat on the hourly chart. Downside targets at  746.80 and 738.20 are shown in the accompanying chart, but neither is ideal for bottom-fishing because they roughly coincide with visually obvious lows to-the-left.

I’ve been beating the drums for a push up to 112, but Goldman (GS) flunked the strength test yesterday — miserably — when it failed by a relatively small amount to surpass a look-to-the-left peak at 102.71 recorded last October. If the rally had had any guts, the extra $1.32 shouldn’t have been a problem. Instead, the stock head-faked sharply higher in the early going, only to die at 101.41 and retreat at a kamikaze pitch. The subsequent air pocket amounted to $7, a comeuppance that is likely to put bulls on the defensive for at least the next 2-3 days. Based on the chat-room discussion, I can’t tell whether any subscribers put on the calendar spread. If so, let me know in the chat room, along with the price, so that I can establish a tracking position.  Check back for an update, since we may cut our losses if Goldman looks punk. In the meantime, for each two spreads, offer an additional April 115 call naked short for 2.60, day order.

The multiyear high achieved two weeks ago came within 0.64 points of a rally target more than five months in coming, so we should be alert to the possibility that an important top is in.  The pullback has already generated several bearish impulse legs on the hourly chart and a couple of patterns that have reached their ‘d’ targets. However, it would take merely a further decline to 85.62 to achieve this on the daily chart.