The stall at the 1949.25 midpoint resistance (see inset) suggests the futures are consolidating for a follow-through to 1978.25. Night owls could have a chance to board ahead of the rally by bottom-fishing the Hidden Pivot support of a downtrending abc pattern. At the moment, this would imply bidding 1935.75 (15-min, a=1956.25 at 2:30 p.m. EDT) with a stop-loss of perhaps three ticks. The 1942.50 midpoint support of the pattern has already been breached, and although it would require a nasty takedown overnight to hit its ‘D’ sibling, that’s still the most conservative place to try to get in. Otherwise, you can attempt to enter with the trend using a signal from the 1-minute chart. _______ UPDATE (1:30 a.m.): My hunch is that the headline “Ebola Hits NYC” Thursday night caused the futures to overshoot my target. Instead, they fulfilled the somewhat lower target of this gnarly pattern within a single tick: (15-minute) a=1956.25 (2:30 p.m.); b= 1941.50; c= 1946.75. DaBoyz have turned the dive into a swoon with a so-far 12-point rally, but they may be pushing their luck to shoot for any more. It’s not just Ebola, or even Ebola plus the hatchet-wielding jihadi psychotic in Queens — it’s just the feeling, as the week draws to a close, that the pace of disturbing events around the world is spinning out of control.
