ESM09 – E-Mini S&P (Last:882.75)

The futures did a little jig at 880.00 to create a bottom near the end of Wednesday’s session, but a Hidden Pivot support just below there at 878.50 is nonetheless worth bottom-fishing if you are a night owl looking for something to keep you awake. An 877.75 stop-loss is appropriate, implying that you could take partial profits, or implement a trailing stop for a single-contract position, if 881.25 is touched on the expected bounce. The pattern is so pretty that I’m surprised the futures did not hit 878.50 on the first try. I’ve reproduced it for your interest and will note that the ‘B’ low is about as unsausage-like as they get. The pattern also begins with a classic one-off ‘A’. Someone asked about “sausage B’s” in the chat room tonight, and this one illustrates the perfect ‘B’ — i.e., one that narrowly exceeds any prior lows that can be found to the left of it. ABC patterns that exhibit this trait seem to yield the most reliable and precise ‘D’ targets.  _______UPDATE (9:29 a.m. EDT):  The trade worked oh-so-nicely when the futures bottomed at 878.75 — a single tick from the target — then took a 9-point bounce. I’ll assume the pivot was front-run by subscribers and the recommendation traded, since the low fell so close to the target.