We’re using a 1238.90 rally target for now, corroborated by last Wednesday’s surge to within a dime of its midpoint ‘sibling’ at 1208.60. While it’s disappointing that the futures have not gone on to achieve the higher target straightaway, neither have they given up much ground. The fact that they’ve maintained altitude suggests that the move is a consolidation, but this would still need to be confirmed via a push above 1208.90 (see inset). That’s the midpoint pivot of a minor rally pattern, and its decisive breach — meaning by $1.00 or more — would imply the futures are on their way to 1223.90 over the very near term. Traders looking for a way in should focus on bullish ABC patterns on the 5-minute chart or less.
