A 1256.50 rally target came within two points of nailing the top of a nasty bull trap that saw the futures plummet 32 points overnight. Most of the carnage came in the space of two hours; however, it would have been very difficult to get short at the top, since camouflage opportunities were nowhere to be found, even on the one-minute chart, when we reviewed the E-Mini’s charts during yesterday’s weekly tutorial session. The rebound thus far has been feeble, and there’s an unfulfilled downside target at 1214.75 that will remain valid unless the 1241.75 point ‘C’ of the pattern is exceeded to the upside (see inset). As a practical matter, however, bulls would regain the offensive with a thrust exceeding 1232.00, just four ticks above the so-far high as of around 1:45 a.m. EDT.
