Tuesday, January 20, 2015

Friday's rally from a technically compelling place brought the futures precisely to the 49.35 midpoint pivot shown. Although we should wait until the resistance has been exceeded before we assume more upside is coming to its 'D' sibling at 52.30, the shallow pullback thus far suggests bulls have the edge. Traders should use any minor, ABC pattern that occurs at or above the red line to get long, but if you prefer to use a 'mechanical entry' on a breakout above it, a 1.00-point stop-loss would apply from 49.40.

The futures failed on Friday to achieve an 'easy' correction target at 1956.75, implying DaBoyz have enough 'juice' to squeeze stocks higher Monday morning. We've seen bull trap openings in each of the last five sessions, but this one seems likely to consolidate any buoyancy in the first hour for a presumptive second leg up. Even so, there seems to be precious little energy to for a sustained rally get, and so we shouldn't expect much.  The closest Hidden Pivot benchmark is the 2033.25 midpoint Hidden Pivot shown, and that can serve as a minimum upside projection for the near term. It would take a close above it, however, to imply a follow-through to its sibling 'D' target at 2096.00, By then, the 2105.00 target we've been using for weeks will be in play, and with it a good reason to consider shorting aggressively there with a tight stop-loss.