Although there are alternative patterns related to the long-term bull market, the one shown yields the closest Hidden Pivot resistance of significance: 2053.00. We can use it as a minimum upside projection for the rally cycle begun two weeks ago from nearly a hundred points lower, but we should be cautious about assuming it is certain or even likely to be reached. Indeed, any index climbing in record territory will be particularly vulnerable to a precipitous decline from out-of-the-blue. Traders should hold a bullish bias nonetheless and stay focused on perhaps the 5-minute chart when looking for opportunities. As an example, on the five-minute chart, locate these coordinates: a=1991.25 at 10:35 a.m. EDT; b=1981.50; c=1990.00. Despite the fact that Friday’s Fed-driven histrionics made quite a mess, you can see than the sharp a-b impulse leg eventually gave way to a follow-through leg that could have been bought at the midpoint pivot with a very tight stop loss. Paradoxically, it is when fear and greed are at their craziest that we find some of the clearest and most tradable Hidden Pivot patterns. ________ UPDATE (1:01 a.m.): DaBoyz are pretty ambitious for a Sunday night, goosing the futures the equivalent of 100 Dow points so far. For bulls and bears alike, I can offer a very usable, minor Hidden Pivot target well shy of the big picture one at 2053.00 identified above. It lies at 2008.00 — 13 points above current levels — and can be found on the 60-minute chart using these coordinates: A=1890.25 on 8/8/; B= 1961.00 on 8/15; and C= 1937.25 on 8/15._______ UPDATE (August 26, 11:33 a.m.): No change in my outlook or advice. Keep in mind that the futures can take as long as they darned well please to reach our modest target, since they simply mark time until there’s enough short-covering pressure to move them higher. Most immediately, the September contract looked likely to correct Monday night to 1990.00, having breached the 1993.25 midpoint support of the corrective pattern (on 5-minute) a= 1995.50 at 10:45 a.m.; b=1992.75 at 12:10 a.m.
