An entire day spent screwing the pooch failed to lift the futures above a modest but technically important peak at 1867.50 recorded last Thursday. Once this happens, it is almost certain to turn bears fearful, causing the flurry of short-covering that seems destined to push this gas-bag to new record highs. The foregoing is not a done deal until the peak has actually been exceeded, but traders looking to get a piece of the action should zoom in on any print above 1867.50, since the subsequent pullback could yield a relatively low-risk entry opportunity. Such a pullback would be more useful if it occurs relatively quickly (and by ‘quickly’, I mean within 30 seconds to two minutes of the upside breach). This implies that you should probably look for your entry signal on the 3-minute chart or less. _______ UPDATE (10:01 a.m. ET): The 3-minute chart tripped a ‘camo’ buying signal at 9:48 that worked: A=1863.00 at 8:15 a.m.; B=1868.25 at 9:36; and C=1865.75. If you were on the one-minute chart, however, there was one false entry signal before the rally began in earnest.
