Yesterday’s selloff made short work of an ostensibly solid Hidden Pivot midpoint support at 27.018 pivot, lending authority to its 18.355 sibling. A 50% fall from here is not yet a done deal, although the futures are almost certain, at the very least, to breach late September’s 26.185 low before they find traction. It could prove fleeting, but I would expect a bounce of at least $4 over a period of 3-5 days if bulls are to be given a fighting chance. Keep in mind that the bounce would be occurring with relatively few profit-takers aboard, since most bulls will have gotten shaken loose by the feint beneath 26.185. If this rally were to fail to generate a bullish impulse leg on the daily chart (a feat that would require an unbroken sprint from 29.135 to 33.305), then we should prepare for the worst.
