Although Hidden Pivot signs are very bullish for the E-Mini S&Ps, implying indirectly that my 14969 Dow target is still very much in play, the Dow Average itself has unfurled a yellow warning flag.  Notice how the recent high at 13661 fell just 5 points shy of its 13666 ‘D’ target.  Moreover, the high that had preceded it — 13339 on May 4 — occurred precisely at its Hidden Pivot target, 13339. Taken together, these two bullseyes lend inarguable authority to the pattern itself as well as to the obvious fact that it is spent.

Because it took more than two years for the pattern to play out, the 13666 Hidden Pivot should show considerable stopping power. However, if the Dow comes roaring back within the next couple of weeks, blowing through 13666, it would be unmistakable evidence that a 2000-point rally to 14969 is indeed possible, notwithstanding the economy’s seeming slide back into recession.