Short-covering — the only source of buying power these days — was noticeably lacking yesterday, preventing the futures from making even a marginal new high above Tuesday’s. The day ended with bears somewhat dominant and this vehicle presumably headed to the 2072.75 target shown (see inset). Absent any disturbing headlines, however, it’s liable to be a struggle to push this vehicle lower. Indeed, traders might as well try bottom-fishing with tight stops at ‘p’ and/or ‘D’ as shorting near the green line. If p=2089.75 is decisively breached, a rally back up to the pivot would set up a ‘mechanical’ short there with a stop-loss at 2096.00.
