Yesterday’s selloff was bearish impulsive on the hourly chart, but notice that it began from a high that had exceeded a ‘look-to-the-left’ peak at 1347.50. The effect was to refresh the chart’s bullish energy, even if the current dynamic is a presumably short-term duel between bulls and bears. The latter cannot but reveal their strength, or lack of it, at the p midpoint of the corrective pattern shown in purple. If the larger, bullish ABC pattern is about to resume in earnest, the corrective abc should reverse from p or higher. _______ UPDATE (10:41 a.m. EDT): The futures ultimately bounced from a low at 1308.40 that was close enough to the eventual ‘p’ at 1309.10 to yield a picture of strength. When corrections fail to reach their ‘d’ targets, as occurred here, that is always a bullish sign. Use 1387.70 for a rally target now (60m, A=1269.30 on 7/17), subject to midpoint resistance at 1348.10. A buy signal has been tripped at 1328.30, so hunting for ‘camouflage’ is appropriate.
