Although yesterday’s erratic weakness did not alter the bullish impulsiveness of the hourly chart, it magnified Wednesday’s failure to surpass any of several external peaks recorded last week. This is not exactly a sign of good health, but because the downtrend didn’t exceed any prior lows, bulls still deserve the benefit of the doubt. The ABC pattern shown was technically a ‘buy’ at x=1179.20 (the green line), but I’d suggest using a mechanical bid to get aboard if and when the futures pull back after exceeding the midpoint resistance at 1183.60 by $3 to $5. If this were to occur after the start of the regular session, a higher level of caution would be warranted, since this vehicle seldom follows through on rallies during the day.
