October’s 220-point impulsive rally has been driving this vehicle ever since, presumably toward a 1362.25 target that looks no less compelling after a day of weakness such as we saw yesterday. Still, because we wouldn’t want to miss out on the Short of the Year just because the E-Mini S&P didn’t quite reach our target, we’ll keep a close eye on all abc retracements, especially near their ‘p’ midpoints. The nearest lies at 1311.25 and can be seen in the accompanying chart. If the downtrend overshoots it, that would be a mildly cautionary sign for bulls.
