Although we’ve been using a bearish sequence of targets at 1237.40, 1212.80, and 1196.40, we went against the forecast yesterday to trade a promising rally. Details of the trade were advanced to subscribers early Thursday morning in the form of a bulletin. Traders’ outcomes would have varied, however, since the entry signal, tripped at 1282.50, gave way to a rally that died at 1293.80 — well shy of the 1298.10 target. The target remains viable, and the futures have yet to dip below the entry price. However, I’ll leave it up to subscribers to determine whether they stay in the position. My gut feeling is skepticism, since the futures should have been able to reach so modest a target easily. _______ UPDATE (November 18, 1:07 a.m. EST): The finishing stroke to our presumptive rally target at 1298.83 is taking quite a while, especially considering how unambitious the target is. It remains valid nonetheless, but you’ll need to craft your own entry strategy amidst the tedium of fluctuations that are now entering their fourth day (see inset, a fresh chart). Bulls will need to do somewhat better to energize this vehicle for bigger and better things. Specifically, they must overshoot the target and surpass the 1313.40 peak without pausing for breath. The bigger picture remains bearish, defined by the sequence of targets given above.
