Yesterday’s tout caught the exact high and low of a wild, $30 swing. The 1326.00 top came within four ticks of my target. For reasons that were made explicit in the tout, the failure of buyers to push above it telegraphed the nasty swoon that was soon to follow. The plunge hit 1296.00 — 40 cents above a correction target at 1295.40 I’d disseminated earlier in the week with the futures trading around $1312. The futures were on thin ice Thursday night, threatening to fall a further $22, to 1284.10, if the 1299.10 Hidden Pivot midpoint support (red line) fails. (Note: It can be bottom-fished with a micro-tight stop-loss.) The outlook would brighten for bulls, however, if they can muster a push today exceeding the 1327.30 ‘external’ peak shown. If that happens, it could set up a potentially powerful rally next week. ______ UPDATE (11:09 a.m. EST): The futures have plummeted anew, breaching the 1284.10 target by several dollars. This implies more downside to at least 1271.60. That crystal-clear target can be bottom-fished and is derived from the following coordinates (240-minute chart): A=1359.60 (10/30); B= 1305.20 (11/5).
