This session provided us with a front row seat to yet another dramatic day on Wall Street. The broad averages had been swinging wildly for two weeks, and on this particular day the Dow was down about 400 points after rallying 600 points the day before. Surprisingly, though, there were no bullish impulse legs to be found on the hourly chart, giving us reason to consider why stocks were likely to head lower. We spent the remainder of the session looking at December Gold, which resumed its furious rally as we watched in real time. This held little surprise or suspense for us, though, since we “knew” exactly where the rally was headed: to 1810.70, a middling Hidden Pivot resistance.
