The futures played toe-sies with an 1842.75 midpoint resistance all day long on Wednesday but failed to get past it. My hunch is that it will succeed today. In any case, if and when 1842.75 is breached by more than 1.00 point, expect the rally to continue to at least the 1859.25 target shown. If you’re long for the ride, I’ll suggest reversing the position and going short with an 1860.25 stop-loss. If you hold no position at all, you can short up to four contracts there provided you use ‘camouflage’. _______ UPDATE (January 22, 11:00 p.m. EST): The futures have been down as much as ten points Wednesday night, a decline of sufficient magnitude that we might infer that something is amiss in the geopolitical world. My hunch is that it’s the usual sleazy opportunism at work — a shakedown prompted by who-knows-what-news. If I’m right, selling should dry up overnight with the futures having gone no lower than the so-far bottom at 1828.75. If, on the other hand, sellers take out Tuesday’s 1826.25 bottom, that would be mildly interesting, since it would generate a bearish impulse leg on the hourly chart.
