Notice in the chart how [last week’s] burst ripped through the 1672.10 target of a clear and compelling pattern. This strongly implies that the futures are still eager to run, even after the torrid performance of the last several days. Accordingly, we should focus on the 1801.30 ‘D’ resistance of a large bullish pattern begun on 12/29/11 from 1535.00. The 1535.40 point C recorded on 5/16/12 is only slightly higher, but only a tick’s difference is required to qualify the entire pattern as a bullish ABC. It’s p midpoint at 1668.40 was exceeded yesterday by a hefty 9.10 points, suggesting the futures have made up their mind to go for 1801.30. A pullback to p should be viewed as an opportunity to buy on weakness, but it would be with the understanding that a subsequent rally could come following a consolidation, or, alternatively, a touch-and-go landing.
