I’m quite confident in the pattern shown — it looks and quacks exactly like a duck — even if the futures seem less so. Perhaps they could use some obedience training? Yesterday they pushed past the midpoint resistance, presumably bound for the p2 pivot at 2116.00. Instead, the little bugger turned tail and retreated all the way down to the green line before buyers stepped in. This is simply crazy, especially since the intraday high occurred not in the middle of the night, as has been customary, but in broad daylight, an hour after the opening bell. This would seem logical if there had been news after the opening conducive to a short squeeze. But that was not the case, since the headlines were dull and uninspiring. Coming in today, we’ll stick with the bullish targets shown. They will remain theoretically valid until such time as the ‘C’ low at 2080.00 is breached to the downside. Night owls can try bottom-fishing at 2087.75, the p2 pivot of the minor downtrend from Wednesday’s top. ______ UPDATE (10:41 a.m.): The little drecker has let gravity do all the work this morning. The slight overshoot of a minor 2084.50 downside target implies that a pattern of larger degree is at work, with a target at 2079.25 (15-minute, A=2107.75 on 7/31. Note: The uppercase ‘A’ implies that, by my reckoning, the dominant trend is now bearish; and that any rally from 2079.75 should be shorted.)
