With trading in 2012 having begun, the futures are up nearly $14. However, this hasn’t recouped losses sustained when they dove late in Friday’s session, let alone created a bullish impulse leg on the hourly chart. I am wary of a bull trap under the circumstances, but putting aside my gut feeling, the surge will need to go a further $15, surpassing a small peak at 1594.40 recorded last Wednesday, to demonstrate buyers’ resolve. The bigger picture would still be bearish, however, since the rally from Thursday’s low at 1523.90 is taking place in the wake of a breach of an important midpoint support at 1544.70 associated with a correction target (broached here earlier) at 1445.70. Camouflageurs working the night shift should take note of the fact that a b-c pullback from anywhere between 1594.50 and 1601.50 could provide excellent cover for initiating a long position with relatively little stress.
