As expected, the futures pulled back on Friday after topping two ticks above a middling Hidden Pivot rally target a day earlier. The selloff was a little stronger than I’d anticipated, exceeding a 2101.25 correction target by four points. This occurred after the futures had bounced five points from 2101.00, implying that subscribers could have profited from both the long and short side of the day’s ups and (mostly) downs.
Looking ahead, Sunday night owls can use the small corrective pattern shown to try bottom-fishing against the trend. Although the weakness could continue, you need risk no more than three ticks on a stop-loss beneath bids at p, p2 or d. That last pivot is the least risky place to put your bid, but keep in mind that it also gives you the highest odds of missing the turn. _______ UPDATE (2:10 a.m. EDT): The futures gapped higher when they opened Sunday night, negating my instructions. The rally projected to at least 2118.25, or to 2137.25 if any higher. (Note: These numbers correct an erroneous sequence of targets given here earlier. The correct pattern begins with A=2050.00 on May 7. Notice that the pullback to p=2099.00 on Friday was a ‘mechanical’ buy.) A decisive breach to the upside of 2118.25 would imply that further progress to 2137.25 has become an odds-on bet.