Although trading at record highs, the stock market continues to look like hell. On Friday, buyers pushed this vehicle marginally above the previous day’s peak before stalling precisely at the 75% pivot, 2121.75. The futures opened on mild weakness Sunday night, hinting that DaBoyz are accumulating contracts in order to unload them at higher prices. They don’t know about the 2135.75 ‘D’ target or its stopping power, but that’s the number we should use as a minimum upside objective for today. You can short D with a stop-loss as tight as three ticks, stepping up the size of your position only if you’ve been long on the way up and are reversing the position; or, if you use ‘camouflage’ to initiate the short. Wherever the minor uptrend tops, we’ll want to pay very close attention to the corrective abc that follows, since, if it overshoots its ‘D’ target, that would be evidence that a correction of major degree has begun. If the futures instead correct quickly and unexpectedly rampage higher, we would use the 2138.75 target of a larger pattern (A=2038.00 on 4/3); and thence 2174.25 (A=1966.00 on 2/2). These Hidden Pivot resistances are sufficiently clear that we should expect a tradable pullback from each. If it doesn’t come, assume there’s real buying power pushing the rally.
