The correction from the all-time high recorded on May 22 looked to have run its course at yesterday’s low, 1620.75 (see inset). That’s 1.00 point above a clear Hidden Pivot, and the fact that the turn came from just above the target is mildly bullish going forward but would become still moreso if and when the bounce ‘goes impulsive’. That would take an unpaused thrust exceeding a small external peak at 1645.75 recorded Friday at 3:30 p.m. EDT. Camouflageurs should take time to locate this peak on the 15-minute chart, since a ‘b-c’ pullback from just above it could provide a very low-risk set-up to get aboard. Immediate potential would be to 1648.50 (A=1620.75 at 11:45 a.m. on 6/3), but it could be just the beginning of a longer ride. _______ UPDATE (11:32 a.m. EDT): Well, well, well. It looks like the algos can tell the difference between a really rally and one with a yellow streak down its back. Today’s was of the latter variety, since it stopped at exactly 1645.75, evidently sensing the same point of resistance that an actual human had identified and deemed significant (see above). The inability of the futures to push above this number should be noted as a sign of latent chicken-heartedness, notwithstanding the fact that my Dow target is still 1550 points above. This is yet another reason to keep one foot planted on the fire escape as the market attempts to rally into increasingly bad new — now including yesterday’s, that the U.S. manufacturing sector is in its worst slump since The Great Recession allgedly ended.
