The tradable swings of the last couple of days have been precisely predictable, as you can see in the accompanying chart. Under the circumstances, we should look for the next push to hit 1712.75 exactly and then stall. Traders looking for a ‘camouflage’ foothold should use the series of ‘external’ peaks I’ve highlighted for leverage, since a ‘b-c’ pullback from between any pair of them could create the sort of low-risk buying opportunity that is worth waiting for. D=1712.75 would of course be short-able, with a stop-loss as tight as four ticks. ______ UPDATE (6:57 p.m EDT) The initial bar of yesterday’s ‘No-Tapeworm!!’ short squeeze hit 1713.00 exactly before selling off by 7 points on the next. When the futures got second wind they rallied again, this time to within three ticks of a 1724.00 target easily discernible on the two-minute chart (A=1695.00 at 2:00 p.m., B= 1713.00 at 2:02 p.m, and C=1706.00 at 2:06 p.m.). So what’s next? Look for resistance not far above, at the 1728.50 target of the pattern shown (a new chart). If it gives way easily, however, we’d probably be looking at a finishing stroke to 1767.00, a precise and presumably reliable target that projects from the beautiful one-off ‘A’ at 1549.75 near the lower left-hand edge of the chart. _______ UPDATE (September 19, 6:40 p.m. EDT): The feeble bull trap that began in the wee hours Thursday with a rally to 1726.75 — inches shy of the 1728.50 target given above — changed nothing in my outlook, least of all the very bullish, 1767.00 target. If the futures continue to correct, however, touching 1692.60, traders should view this as a potential ‘camo’ buying opportunity, since that’s where the Hidden Pivot midpoint of the big rally pattern shown is located.
