A compelling Hidden Pivot at 1356.00 has been our lodestar for the last 130 points, after the futures tripped a theoretical “buy” signal at 1213.50. On Friday, they got within 13 points of our target, and although I still regard it as theoretically viable, we need to be alert to the possibility that the Mother of All Bear Rallies could die without having reached it. That possibility was driven home by the so-far 17-point selloff that has occurred in thinly traded holiday markets. The move is robustly impulsive on the hourly chart, having surpassed no fewer than one internal low and four externals. We’ll look for opportunities to get short in real time intraday, so stay tuned for updates here and in the chat room. In the meantime, if you’re proceeding on your own initiative, shorts should be considered from the ‘p’ midpoints and ‘d’ rally targets of every minor upward retracement.
