The futures were flat shortly after 9:00 Sunday night, but my hunch is that the lull is setting up a resumption of last week’s short-squeeze rally. This would be confirmed by a decisive breach of the 2096.50 midpoint pivot shown. If the red line is exceeded by perhaps 4.00 points, a pullback to it could conceivably set up a ‘mechanical’ buying opportunity for night owls. It would also hint of further upside to as high as 2119.75, the ‘D’ target of the pattern. That would equate to a Dow rally of more than 200 points and put the E-Minis within easy distance of new all-time highs. I’d be eager to get short up there, especially if the rally hits a Hidden Pivot target that has been six weeks in coming. The precise target is given in the chat room in a post published by me at 21:12. It can be found on the hourly chart, where A=2038.25 on July 9, and B=2126.25 on July 20. _______ UPDATE (8:47 a.m.): The futures have sold off moderately overnight, so far with little technical consequence. The weakness would generate a bearish impulse leg on the chart shown if it were to exceed 2076.00 to the downside. The 2119.75 rally target will remain theoretically valid in any case, however, as long as the pullback doesn’t exceed the point C low at 2073.25.
