Tuesday’s rally can serve to remind us that bulls are easily capable of reversing a nasty selloff like the one that began the week and turning it into the all-too-familiar swoon. Although they didn’t quite recoup all of Monday’s losses with yesterday’s surge, they looked to be in good shape to do so today — and then some. The 1863.25 target shown implies that traders positioned from the long side will have 30 points of upside to work with. If you are long when the futures get there, I’ll suggest applying some of your gains to a stop-loss on a short from that price. This Hidden Pivot may not contain the mindless herd for long, but it still looks like a good bet to produce a tradable reversal.
