Despite a nearly $50 rally from within 30 cents of the correction target given here yesterday, the December contract has dropped two subtle hints that it’s not ready to take off. For one, last Thursday’s upthrust to 1754.00 narrowly failed to get past a 1757.90 ‘external’ peak from September that is undeniably daunting. And for two, the corrective abcd from last week’s 1754.00 high made it all the way to its ‘d’ target rather than reversing from the ‘p’ midpoint of the pattern. These small signs of weakness would be negated by a pop exceeding 1757.90, but until that happens, the burden of proof will remain with the bulls.
