Looks like permabears will have to wait yet a while longer for a possible Mother of All Tops.  The 2007.25 target shown is equivalent to a DJIA rally of a little more than 300 points. This target was clear when I first published it several weeks ago, but yesterday’s price action made it all but certain to be achieved, and probably very precisely.  Notice that Wednesday’s price action amounted to a pullback and consolidation just above the red line, which represents what I call a ‘midpoint Hidden Pivot’.  The pivot was resistance when the week began, but it was transformed into chop suey by Tuesday’s bulldozer rally.  At that point it was possible to declare that a further run-up to 2007.25 was all but a done deal; however, yesterday’s pullback almost exactly to the red line added an element of precision to the target projection.

Of course, we should never chisel our predictions in stone, since Mr. Market has a canny way of making fools of those who are wedded to certitude. So for the record, let me state that there’s a 25% chance that the futures will make an important top somewhere below 2007.25.  There is also the possibility of the futures blowing past 2007.25 without a tradable pause, although I would give that scenario no better than a 10% chance.  In any event, I will be monitoring the lesser charts closely for the first sign of trouble. As things appear now, however, a (very) tradable top seems likely at 2007.25. Accordingly, traders should come to their desks each morning with a bullish bias and a song in their hearts.