The futures did yesterday what they’ve been doing for months – i.e., topping in the dead of night on near-zero volume, then spending the rest of the day screwing the pooch. In the course of this tedium, they avoided a rendezvous with the 2046.75 target shown, presumably because it lay too far outside of the range established in the opening hour. The target remains valid nonetheless, and if it’s reached at the usual time — i.e., between 2 a.m. and 5 a.m. EDT, I’d suggest bottom-fishing with a stop-loss as tight as 1.00 point. Alternatively, a thrust exceeding 2069.50 would be warning of a presumably minor reversal. _______ UPDATE ( 12:34 a.m. EDT): DaBoyz have wafted this carny game as high as 2072.25 tonight, creating a bullish impulse leg on the hourly chart. Although a ‘b-c’ correction leg has yet to form, traders can use a=2063.00 (10:00 p.m.) as a starting point to generate an entry signal along an abcd pattern. The trade will become riskier if the point B high winds up being higher than 2072.25, since the rally so far, such as it is, has probably already turned too many other traders bullish. _______ UPDATE (7:14 a.m.): On the 30-minute chart, after one unsuccessful attempt, the trade tripped at 3:45 a.m., based on b=2077.00 (1:30 a.m.); c=2071:00 (3:30 a.m.) and x=2074.50. Half the position should have been exited at p=2078.00 (6:15 a.m.), with the remainder held for a shot at D=2085.00, o-c-o with a break-even stop at 2070.75. _______ UPDATE (10:21): The position was scratched after the futures failed to go any higher than 2078.25.
