The bounce off Thursday’s lows points most immediately to the 1394.30 target shown, although we should be wary of the fact that bulls initiating a trade at the first signaled ‘x’ would have been stopped out. Regardless, if and when buyers get second wind, pushing this vehicle past the 1388.10 midpoint, we should infer that it’s on its way to the target. Thereafter, as always, an easy move through 1394.30 would portend another leg up, presumably after a correction. ______ UPDATE (12:17 p.m. EDT): After pushing past the midpoint, the futures were unable to parlay this success into what should have been an easy move to at least 1394.30. This is disappointing, to say the least, and implies that today’s $13 rally was just more screw-the-pooch price action.
