There was nothing impressive about the wheezy, short-squeezy spasms that produced yesterday’s very modest gain. The biggest rally of the day was accomplished by running stops placed beneath Monday’s low. With few bulls still on board at that point, it required little volume to goose the futures into a 17-point waft. This little game was being repeated in after-hours trading Tuesday night. Notice in the chart (see inset) how the low of the rally was a single tick beneath a low made three hours earlier. Again, this shook out the bulls, lightening the load for the rally that has ensued. But as of around 8:30 p.m., DaBoyz had extracted a gain of just 6 points for their troubles, casting sufficient doubt on the veracity of the rally to shorten its life span. Night owls should pass up a second chance to short this dud at ‘p’, but if DaBoyz wax bold and push this hoax to the 1857.25 target, you can short there with a stop-loss as tight as 1.00 point. _______ UPDATE (10:03 a.m. ET): A new B-C has shifted the target north to 1859.25. It feels doubtful that DaBoyz can muster the wattage to reach 1859.75, so any shorting should be down with-the-trend. I’d further suggest zooming down to the 5-minute in search of ‘camouflage’ opportunities.
