Bulls made lazy by the impending Memorial Day holiday aren’t entirely to blame for yesterday’s somnambulant rally. Turns out the intraday high closely coincided with the respective ‘D’ targets of two ABC rally patterns. Double stopping power. The larger and more important of the targets is shown in the chart, but there was also a minor ‘D’ Hidden Pivot at 1882.50 (labeled in purple) that was flagged in the chat room and which ultimately was exceeded by two ticks. Although the rally was from Dudsville, it should be presumed self-sustaining for at least another day or two, for a couple of reasons. For one, shorts were pinned on the ropes the entire day, there having been no pullbacks greater than four points; and there they remained at the closing bell. For two, the Masters of the Universe left nearly 20 points of running room between the end-of-day settlement price and new record highs. This means They can manipulate this vehicle at least somewhat higher Tuesday on merely vaporous buying before traders start feeling jittery about what might happen when it wafts into record-high territory again. The last several such forays have been swiftly rebuked, and although seasonality will strongly favor the bulls ahead of the holiday, buyers could just as easily turn skittish on the realization that they’ve hoisted this erstwhile cinder block just a scoach higher than whatever the day’s headline hum-drum might properly allow.
