Yesterday’s analysis emphasized the negatives, which still obtain despite yesterday’s encouraging bounce. The rally was bullishly impulsive on the hourly chart (although not obviously so; see inset), yielding an immediate upside target at 1683.30. The midpoint sibling of that Hidden Pivot lies at 1669.40, which is above yesterday’s high; and the ‘D’ target, too, is just above another, namely the 1682.80 peak recorded Tuesday on the way down. Obviously, this second, ‘external’ peak is quite important to the near-term picture as well as to our determination of the rally’s strength. The most bullish outcome would be an upthrust today that gets past peaks #1 and #2 without a b-c correction on the hourly chart. But if the futures merely tiptoe up to within a few ticks of 1682.80 and pull back for a running start at it, that would be cause for optimism ahead of Sunday’s opening. ______ UPDATE (10:36 a.m. EDT): The futures look feeble so far this morning after rallying no higher than 1664.90 overnight. The benchmarks noted above still apply nonetheless.
