The daily chart (see inset) offers a simple picture of a bull market that appears rested and ready to embark on a powerful new rally. The move could carry to as high as 2228 in the weeks ahead — equivalent to about 1000 Dow points.  Notice that the futures stalled in late December in their first encounter with the red line, an important midpoint Hidden Pivot resistance. But two months of noodling around has evidently left buyers raring to go. The last three days have seen a modest push above the pivot, but the breach does not yet appear sufficient for us to infer that a finishing stroke to the target is a done deal.

All bets would be off if the dollar breaks out of an apparent consolidation pattern of its own, since the deflationary pressure that would exert on financial markets would generate the kind of headlines that even The Bull That Would Not Die couldn’t shrug off.  Dollar worries aside, and despite the bullish look of the chart, I am wary of a bull trap and will be monitoring the E-Mini’s vital signs intraday, since the failure of a minor, intraday rally to achieve a Hidden Pivot target could hint of trouble. I’ll also be looking for a low-risk buying opportunity if the futures should pull back to the red line after making perhaps 10-15 more points headway. Stay close to the chat room if you’re interested.