Friday’s buying spree was robustly impulsive on the daily chart, surpassing no fewer than one internal and two external peaks. This all but guarantees that the S&Ps will eventually push above the highs of last spring and early summer. Notice that the rally did not take out the topmost of them at 1344.50. This could set up a possible ‘camo’ buying opportunity, since the action so far is likely to be read by most traders as a double top with that high. We don’t care about the fact that there was no breakout — only about the creation of an impulse leg that, on a B-C pullback from Friday’s high, could subsequently trip an ‘X’ entry signal. I’ve sketched this out hypothetically for the benefit of camouflageurs intent on finding a way in on a chart of smaller degree.
