Although yesterday’s rally sold off in the final hours, it left intact a modest impulse leg that could propel this vehicle to a modest 1165.60 on Thursday. Key resistance lies at the 1159.70 midpoint pivot of the pattern shown, and this will remain the case unless the 1153.80 point ‘C’ of the pattern is breached to the downside. Your best bet for a bull trade would be to get long on a pullback to 1159.70 after it has been exceeded by perhaps 1.60-2.00. The pullback should require at least 3-4 bars, and you’ll need a stop-loss at 1158.60. _______ UPDATE (July 10, 12:48 a.m. EDT): Yesterday’s hiccup did nothing to change the bearish picture. My short-term outlook would turn faintly bullish, however, on a rally today exceeding 1170.00, since that would create a weak bullish impulse leg on the hourly chart.
