Yesterday’s punk rally slithered back up to the midpoint support of the bearish pattern shown, implying that bulls are not eager to take on even small challenges. Indeed, merely marking time seems to be requiring all of the clever tricks they can muster. Under the circumstances, the 1605.75 downside target shown (see inset) is still a logical price to use as a minimum projection for the near-term. However, yesterday’s heebee-jeebees left little doubt that getting short to that number will be vexatious at best. Bears should also be alert to short-squeeze set-ups intraday. I’d suggest monitoring the three-minute chart for this purpose — and even to get long for a very short while if the opportunity is signaled, the better to build a profit to cushion the stop-loss on the short we’re looking to execute.
