The futures were a ‘mechanical’ short from 1927.00 yesterday, stop 1949.00. This is no assurance that the price objective of the trade, 1861.50, will be reached, but it does imply that the odds of this have shortened. Nor is it a worst-case scenario — just a midpoint Hidden Pivot below which sits another at 1795.75, and finally 1730.25. If that last number is reached, it would be equivalent to a drop in the Dow Industrials of about 2100 points in less than a week. Regardless, 1861.50 can be bottom-fished with a tight stop-loss — more aggressively if you’ve caught a piece of the move lower.________ UPDATE (9:25 a.m.): Minutes before Wednesday’s opening, the futures were inches from generating a bullish impulse leg with a push above yesterday’s recovery peak. This is timid action that I read as weakness. The (much) lower targets shown in the chart will remain valid regardless as long as the futures do not exceed the point ‘C’ high of the pattern at 1992.75
