ESZ09 – E-Mini S&P (Last:1091.25)

The futures turned and burned after faking weakness in the early going, rallying 22 points from low to high. Impressive?  Not really, since buyers didn’t have to push past even a single external peak on the intraday charts. We’ll hold our enthusiasm in reserve pending the completion of a bullish pattern that projects to 1106.25.  If you’re looking for camouflage entry opportunities Thursday night or Friday morning, I suggest using the two labeled peaks for cover. An impulse leg ‘B’ falling between those peaks would be just about perfect, although you’ll probably have to be nimble to get on board with a buy-stop. _______ UPDATE (12:51 p.m.):  The pattern is playing out as illustrated (although there was no reason to expect this; the illustration was intended as a “what-if” map), yielding an entry at 1094.50, a stop-loss at 1093.50, a 1095.25 midpoint, and a ‘D’ target at 1096.50.  _______ FURTHER UPDATE (10 a.m,. EDT): The fact that the futures couldn’t even reach the 1095.25 midpoint of the puny rally pattern I’ve referenced telegraphed the weakness on the opening.  This weakness was impulsively bearish on the 15-min chart, by the way, but that was not telling us much. 

Tagged as: E-Mini S&P, ESZ09, Forecast