The intraday charts are somewhat lacking in clarity at the moment, so I’ve reproduced the ‘weekly’ for a bigger picture. First, putting Hidden Pivots aside, my gut feeling is that it will be at least two weeks or more before the rally from the New Year’s Day low is sufficiently consolidated to embark on a new bull leg, assuming one is coming. To date, bulls have had one false start that occurred when a rally begun in early April failed to get off the launching pad. Although it would take but a print at 1319.80 over the next few days to trip a second Hidden Pivot ‘buy’ signal on this chart, I’m going to suggest taking it with a grain of salt, since my suspicion is that it will be premature like the last. However, this should not preclude our initiating a ‘camouflage’ entry on the long side if the signal is tripped, since there’s always the chance of catching a $50 ride to the midpoint pivot at 1371.20. ________ UPDATE (11:10 p.m. ET): Although there’s no change in the big picture described above, you can try bottom-fishing at the 1281.30 pivot shown. A single contract and a stop-loss no wider than 0.40 should be used, but you can be more aggressive if applying ‘camouflage’. A decisive breach of the support would imply more downside to D=1267.10, another Hidden Pivot support that can be bottom-fished with a very tight stop. Alternatively, if the futures simply move higher, 1299.00 is where the rally would start to look interesting.
