During Wednesday’s online tutorial session, we stumbled onto a potentially important rally target for the Dow with tradable implications. Notice that the 13502 midpoint resistance does not conflict with any prior peaks and that the relevant price pattern has three sharp, single-bar coordinates. Bottom line, this is a compelling spot to look for a top of at least short- to-intermediate-term importance. Of course, if the Indoos should easily brush the resistance aside it could augur quite a bit more strength — to as high as 14969! More immediately, shorts can be initiated using the Diamonds, where the corresponding midpoint resistance lies at 134.84. A stop-loss no wider than 135.04 is suggested. If the order fills and survives for an hour, I’ll provide further guidance via an update to this tout, a note in the chat room and an e-mail alert. _______ UPDATE (September 14, 2:50 a.m. EDT): Thursday’s strong rally not only exceeded 13502 by a whopping 71 points, it closed well above the 13502 pivot as well. This is a shot across the bow of permabears who are skeptical that the broad averages could rally to new all-time highs with the global economy looking so punk. We’re skeptical ourselves, but not so much so that we’ll ignore clear technical signals that point higher.
