Buyers took a well-deserved day of rest yesterday, giving up 25% of Friday’s explosive, $87 gain. What we should like most about this surge is that, before buyers were done, they surpassed an intraday high that lay a single tick above a look-to-the-left peak at 1631.90 recorded on May 8 (see inset). We’ve seen Rockie’s outfielder Dexter Fowler do something similar, making it to third on a long fly ball when most runners would have held up at second. Concerning the peak, although it is tiny, it is a fully formed ‘external’ high whose breach suggests that buyers are feeling feisty, presumably with enough energy to uncork a C-D follow-through thrust later this week.
In the meantime, there may be an opportunity for a camouflage entry at these levels. Notice on the hourly chart that there’s a peak at 1629.70 recorded Monday at around 2 a.m. Because it lies 2.30 points beneath the 1632.00 intraday high, there’s room for an impulse leg to pull back without having broken out above the ‘marquee’ high that most everyone else will be watching. A ‘B-C’ retracement from somewhere in-between the two peaks would create an enticing set-up, with entry at the ‘X’ trigger via a ‘timed’ buy-stop. This is potentially an easy play for those who have been practicing what they learned at the Hidden Pivot Webinar. If you’re in the chat room when the trade is signaled (perhaps in the dead of night), I would encourage you to point it out for the benefit of all.