I’d intended to take a short position home over the weekend, but initiating it on such weakness as we saw on Friday is courting risk. I’d much prefer to get short on strength, especially on a rally to the 2138.00 target that has informed our outlook in recent weeks. However, we’ll put it aside for the moment, since it appears more likely that the futures will fall to 2097.25 first, or 2088.25 if any lower. Either of these Hidden Pivot supports can be bottom-fished with a stop-loss as tight as three ticks. If the trade works, it will provide an additional cushion against any shorting we attempt on the next rally. Alternatively, a close above 2116.50 on Monday, or a decisive push above it intraday, would negate not only the 2088.25 downside target, but also my bearish outlook for the near term. A 2130.50 Hidden Pivot resistance would become my minimum objective at that point.
