ESH10 – E-Mini S&P (Last:1095.50)

The futures are down about nine points — equivalent to around 70 Dow points– shortly after midnight.  As I noted here a few days ago, when DaBoyz let stocks slide at night, their goal is to find a level at which selling dries up. Then they’ll suck up whatever shares come in for sale overnight, but lower their bids if bearish momentum picks up before the opening.  Most of the time, unless there’s awful news to trigger an avalanche of selling on the opening, these operators will succeed at exhausting selling before the bell.  It is for that reason that we should maintain a bullish bias for Thursday.   However, if the decline were to exceed the two prior lows shown in the chart, that would be warning of more downside to at least 1088.50, a Hidden Pivot you could bottom-fish with a stop-loss as tight as three ticks.  Alternatively, the futures would need to touch  1107.75 today to turn the hourly chart bullish. _______ UPDATE (1:30 p.m. EST):  The futures noodled around the 1088.50 support for 20 minutes without showing much lift, so exit would have been on the stop, generating a trading loss of about $38. The eventual low was at 1084.50,suggesting that still lower lows lie ahead.