The futures continue to play “Pong” off the Hidden Pivot midpoints of ABCD uptrends and downtrends, although bulls are obviously winning if you ignore last week’s sideways consolidation. The 240-minute chart shown gives us two targets to shoot for in the days, or perhaps weeks, ahead: the first lies at 1626.30; the second, given here previously, at 1652.00. Although there is yet one more lower point ‘A’ that I have not used, with a corresponding ‘D’ target at 1727.60, my hunch is that a move to 1652.00 will require a lengthy consolidation to set-up a subsequent thrust.
Whatever happens, we shouldn’t take a move to the two lesser targets for granted, since, as I mentioned here on Friday, price action at current levels is looking increasingly toppy. Out first hint of serious weakness would come if the corrective pattern begun off Friday’s peak exceeds its ‘d’ target. We can trade this pattern nonetheless, using a 4-minute chart and the coordinates A=1606.50 (11:32 a.m. EDT); B=1598.80; and C=1603.50. The 1595.80 ‘D’ target thereof can be bottom-fished, if not via camouflage, using a 1595.90 bid and a 1595.30 initial stop-loss. P here is 1599.60, a corrective low hit exactly at the final bell.