The futures are once again banging on the 1846.75 rally target that so precisely contained the bullish stampede at year’s end. I’d said it would take at least 5-7 days for the S&Ps to return to their old high, assuming bulls were still as feisty as they were in the last half of December; in fact, it has taken 10 days. The differential is not sufficient for us to infer weakness or even hesitancy on the part of buyers, and we should therefore look for a quick stab toward the 1863.25 target given here yesterday. The futures are no less a bull trade than they were yesterday, when I advised such. But they will become a ‘spec’ short nonetheless at the target, if tightly stopped. _______ UPDATE (11:14 a.m. EST): With no news on the tape this morning worth caring about, the hesitancy of the futures to push into new record territory should be regarded as a perfunctory marking of time. The pullback has already exceeded a minor, ugly 1836.50 target, implying that still lower prices are coming. If so, look for a tradable turn from 1833.50. This target is not of the highest pedigree, and so it should be bottom-fished, if at all, only with camouflage.
