Bulls had to be pleased with last week’s progress, which stopped just shy of testing the 1230.00 p2 resistance shown. This Hidden Pivot seems likely to be reached either Sunday night or Monday morning, but if it were to be exceeded decisively the first time it’s touched — meaning by perhaps $2 to $3 — that would be reason to infer that the 1250.50 ‘D’ target with which it is associated will be achieved. It would also put in play the 1317.00 target of the still-larger bullish pattern that began with last November’s bear-market low at 1134.10. _______ UPDATE (May 18, 9:31 p.m. EDT): We should remain focused on the 1250.50 target shown, since it remains a logical minimum objective for the near term. I didn’t make this explicit earlier, but there was a good opportunity to get long via a ‘mechanical’ buy on Friday. Notice how the futures pulled back to within a hair of the midpoint pivot (i.e., the red line) before taking off. Although it’s debatable whether we could have caught a low that did not quite reach the pivot, the idea of it should always be held in mind if you’re trading aggressively. You may get another chance if the futures pop through p2=1230.00 and then pull back.
