Yesterday’s monster rally fell just shy of the 1240.00 target I disseminated in a morning update, but if the futures break loose today and close above it, that would augur more upside to as high as 1284.25 (aka ‘D’) over the near term. Our trading bias would be aggressively bullish above 1240.00, but camouflage opportunities derived from the hourly chart may be limited. At present, the best of them would seem to lie in the 1233.75 peak highlighted in the chart. A ‘b-c’ pullback from a few ticks above it would offer a buying opportunity that shouldn’t be passed up if the standard ‘camo’ conditions are met. I’ve sketched this out hypothetically for your further guidance and will provide a tracking position if things play out more or less as imagined. _______ UPDATE (10:08 a.m.EST): There were no subtle camouflage opportunities such as the one I’d drawn, since DaBoyz greedily squeezed shorts for all they were worth overnight, creating a too-obvious impulse leg in the process. It is still valid, by the way (60m, A=1195.50 on 12/19, and B=1249.00, C=?), so bears shouldn’t get their hopes too high merely because stocks are falling this morning. A 13.50-point upthrust now from anywhere north of 1215.50 should be viewed as the possible start of a much bigger move with 40 points of additional potential. Camouflageurs should plan accordingly.
