This week’s commentary spotlights three forecasters of renown who think the bull is dead, or soon will be. And the redoubtable Elliott Wave Theorist went as far as to flatly assert that Friday’s high in the broad averages was THE top. We’ll see. Late Sunday night, the futures were looking mildly bullish, down 10 points. This usually means that DaBoyz are letting stocks fall in order to dry up sellers. This little trick, which has been repeated successfully probably 300 times since the bull market began in 2009, sets up an overnight short-squeeze on almost no volume. Might there be another scenario? Yes: DaBoyz take stocks down, only to be hit with a second wave of selling before they are able to put the squeeze on bears. The Masters of the Universe would be on the run by then, which could send stocks plummeting for the remainder of the day. It has been so long since this occurred, however, that I cannot even remember the last time. Wouldn’t it be a surprise if a bunch of chartists actually turn out to have gotten it exactly right, even if it took a dozen?
Meanwhile, shortly before 1 a.m. EDT, the futures were the unwitting slave of Hidden Pivot forces, bouncing, so far feebly, from within a tick of the 1992.00 target shown. As always, the strength of the bounce can help us determine whether bulls, or bears, will hold sway over the near term. If the bounce exceeds 2006.50, assume it is the former.