I mentioned in today’s commentary that the all-time high achieved in late May was precisely predictable, even if our attention was elsewhere at the time. The actual high occurred at 15542.40, just five points from a key Hidden Pivot resistance at 15547.50 (see inset). As a practical matter, the fact that the rally target was achieved somewhat shortens the odds that still higher highs will be seen. We’ll know more once we’ve seen how the current correction place out. If it forms an impulse leg on the weekly chart by exceeding 14444 to the downside, the c-d follow-though leg will be crucially important. Specifically, the selling would need to reverse from the midpoint of the follow-through leg or higher to imply that the bull market is still healthy.
