While bears may be disappointed in the rarity of two-day declines, they can take heart in the increasingly common failure of the broad averages to string together two consecutive short-squeeze rallies. Yesterday’s feeble hump didn’t even count as a rally, meaning that if bulls don’t take command today, stocks will be in danger of relapsing to the 1807.25 Hidden Pivot currently serving as our minimum downside target. Let’s set the bar for them today at 1930.00, since that’s where a weakly bullish impulse leg would come to exist. Traders looking to catch a ride north can use a much subtler peak at 1912.75 (see inset) to set up a ‘camouflage’ entry. This implies waiting till the peak has been exceeded by two to five (or so) ticks, and then getting long on the pullback.
