I’d be surprised if the next big rally doesn’t come after late September’s 1543.30 low has been broken, but we should be ready for one nonetheless. Although there’s no compelling, big-picture reason to try to get long at these levels via camouflage, the felicitous tedium of retracement rallies could provide us with some very low-risk spots to attempt it. For a precise idea of what I’m talking about, check out the annotated chart (inset), which shows two bullish patterns tied to a look-to-the-left external peak at 1611.40. (And yes, I know it is not a strictly-legit peak, since there is no stick-down low preceding it). Subtleties like the one shown, with a big-pattern impulse leg that has qualified as such by a single tick, are exactly what we should be looking for to get long.
