Bulls are having obvious difficulty pushing past the all-time high achieved on New Year’s Eve, a Hidden Pivot target that had been more than a year in coming. However, they’ve made things so unpleasant for shorts since then that they should be deemed well capable of forging into new record territory, and soon. A small pullback for a running start could yield a tradable opportunity for night owls to get long, based on the pattern shown. The ‘D’ target at 1831.75 can be bottom-fished with a stop-loss as tight as 1.00 point. Because this Hidden Pivot support coincides with structural support from lows made three days ago, it’s worth no more than a single-contract bet. If the order fills and the position goes in-the-black, you’ll need to implement a trailing stop from 1835.00 on up. Note: The foregoing does not preclude the possibility that a far more significant correction awaits. I would lay 2 to 1 against it at the moment, but the futures could conceivably correct all the way down to 1694.50 without picking up much support. In any event, the longer they butt up against the old high without getting past it, the greater the chance of a serious tumble. _______ UPDATE (12:05 p.m. EST): The futures traded no lower than 1833.75 overnight, so we did nothing. (Note: We did, however, get short in DIA using put options that had been recommended.)
