T
he futures exceeded our target yesterday by a decisive 10 points, implying that still higher prices are likely. If so, we can try shorting once again at 3693.25, the target shown. This can be done with a single-contract limit order, stop 3694.25, but you can step up the size to four contracts if you initiate the trade using camouflage that limit theoretical entry risk to no more than five ticks per contract. I’d encourage you to trade these targets even more aggressively if you are reversing a long position when they are reached. Please report any fills in the chat room so that I can establish a tracking position for your further guidance. If the lower target is exceeded by more than two points, you should plan on getting long to 3738.75, the next and final Hidden Pivot created by the rally cycle begun on November 8. _______ UPDATE (10:52 p.m.): The impulsive downturn from nine points below the 3693 target is not a healthy sign. The short-term picture would further darken if this selloff overshoots a 3626.50 Hidden Pivot support that is my minimum downside target for today (60m, a=3679 at 11 a.m., b=3645.25 at 4:00 p.m.)________ UPDATE (February 26, 1:03 a.m.): The selloff reversed from around 3638 — 12 points above our danger threshold. Now the futures appear bound for at least 3725.75, a Hidden Pivot rally target associated with a midpoint resistance at 3682 that has gotten trounced (see inset). _______ UPDATE (February 26, 10:35 p.m.): You can play for a bounce off the midpoint pivot, but keep in mind that point ‘C’ could change if this vehicle moves even slightly higher. If we are lucky enough to get a selloff down to p, it would provide an excellent opportunity to leg into a bull call spread.
