This is peculiar price action, since the futures refuse to fall apart after having narrowly missed achieving a clear rally target at 1859.50. Instead, they have pounded the 1838.50 midpoint support/resistance twice this week (see inset) without breaking it. My gut feeling is that short-covering is depleted for the time being, but that sellers are understandably cowardly about going after this erstwhile bear-killer. Most immediately, scalpers should look to bottom-fish the p midpoint support at 1840.25. A two-tick stop-loss is suggested. The bigger picture still tilts bullish, since the 1859.75 target remains viable.
