Lest bears break out the bubbly prematurely, I’ve reproduced a chart that shows why the 2134.50 rally target broached here earlier is still in play, at least theoretically. The best reason I can think of for the target NOT to be reached is that we are so very eager to get short there. Of course, the goal of getting short will be far more difficult to achieve with the futures thrashing around like a snakes’ body after its head has been severed. No one said it would be easy, though, and we shouldn’t be too surprised if the actual opportunity to nail The Top turns out in retrospect to have been beyond reach. The desperation evident in yesterday’s failed short-squeeze tells us that stocks really are in trouble here. However, we won’t try to be heroes, shorting this vehicle with a 20-point stop-loss. Better that we wait for a clean shot than get whipsawed for the next few days.
