Yesterday’s tout nailed the 1966.00 high of a 21-point plunge within a single tick. Bears shouldn’t allow themselves to grow complacent because of yesterday’s dearth of short-covering, however, since the broad averages were due for a breather after a five-day wilding spree — one that could ultimately clear the path for a run-up to new record highs. Index futures seemed to be rolling over yesterday afternoon, presumably preparing to grope their way to a level at which sellers have exhausted themselves. A slightly bullish bias is indicated nonetheless, since a 1963.50 rally target (see inset) remains outstanding. Because of this, a pullback to the midpoint pivot at 1956.25 should be used by night owls as a speculative buying opportunity. _______ UPDATE (1:08 p.m.): The futures pulled back to an overnight low of 1956.25 before embarking on a 12-point rally. If you caught the move, please let me know in the chat room so that I can establish tracking guidance.
