Permabears hoping that the opening days of 2014 will deliver a long overdue reality check to the markets had better study the chart accompanying this tout.  If anything, the year appears likely to begin with a bang rather than a bust. Notice how all of the price action during the last several days has occurred above a Hidden Pivot resistance at 1830.00. The rally target was so clear and compelling that we might have expected a pause of at least 3-5 days before stocks went any higher. Instead, the futures pushed through the resistance effortlessly, suggesting that bulls are consolidating for yet another leg up.

One caveat applies, however: The daily chart shows Hidden Pivot rally targets at 1856.75 and 1893.75 that have been more than a year in coming (for those interested, A=1382.25 on 12/28/12; or alternatively, A=1340.25 on 11/26/12; and B=1685.75 on 5/22/13). Either number should be expected to show enough stopping power to be shortable (with a very tight stop-loss), and that’s what I am going to suggest.  However, if the lower number gives way easily, bet on more upside to the higher, at least. If it too proves to be a pushover, bears had better run for cover. _______ UPDATE (11:09 p.m. EST): In the chat-room just now, an alert Pivoteer identified a very compelling target on the weekly chart at 1846.75.  The futures are not likely to exceed it, at least not today, since the target is clear, clean and unmistakable. But it will not necessarily make for an ideal short, since, Mr. Market being his diabolical, sonofabitch self, the futures are liable to be hovering within a point of it when 2013’s final bell rings. _______ UPDATE (After the bell): Actually, the futures were hovering just a half-point from our target when the bell rang, having gotten within a single tick of it at the intraday high. Under the circumstances, going home short over New Year’s was a riskier bet than we would generally prefer. It also argues against stepping boldly in front of the speeding freight train when stocks begin to trade again in 2014.