The December contract has blown through a promising rally target at 1739.25 with the greatest of ease, implying it’s got eyes for the 1819.50 target shown. Traders should hold a bullish bias, since there is a theoretical 55 points of upside potential to capture. Getting aboard a rally as mature as this one will always be tricky, but your goal should be to rack up as many points of profit as possible in order to cushion the stop-loss when we attempt to short 1819.50. It would not diminish the bullishness of this chart one iota if the futures were to return to the 1729.75 midpoint pivot, Indeed, that should be viewed as an excellent buying opportunity ahead of a potential last-gasp rally. _______ UPDATE (10:34 a.m. EST): In the analysis above, I inadvertently overlooked a 1769.50 target, but it is why the futures have stalled here; and why, furthermore, this could prove to be an important top. The Hidden Pivot was actually exceeded by 5 points at last week’s record highs, and although that’s enough to tip the odds slightly in favor of yet another leg up (to 1819), considering the long-term, big-picture context of the weekly chart shown, a 5-point overshoot is not quite enough to make the 1819 target a ‘done deal’.
