If sellers dominate as the week begins, expect the futures to fall to the midpoint support at 1250.40, at least (see inset). This Hidden Pivot could prove crucial to the near-term picture, since its decisive breach — or still worse, a close below it — would augur more downside to 1152.10. Notice as well that this last number discounts only the lowermost of a series of point ‘A’ peaks; if the highest of them (1423.30) were to be used, the implied D target would be 1104.80. Alternatively, bulls would be solidly back in command if they can muster a push above 1376.00 this week. Camouflage traders looking for an easy way to climb aboard should use peaks recorded last Wednesday, Thursday and Friday on the hourly chart for leverage. ________ UPDATE (July 30, 12: 20 a.m. EDT): Yesterday’s snoozefest did nothing to alter my forecast. However, we can lower the bar for bulls by using a 1338.90 peak made on July 26 (60-min at 3:00 a.m.) as the number they’ll need to beat to register a pulse.
