Yesterday’s steep decline in the early going reversed around mid-morning, turning what had promised to be a pleasurable day for bears into an unsatisfying, v-shaped swoon. As is nearly always the case these days, the futures made a manipulated high in the dead of night (EDT) on practically non-existent volume. Alas, the subsequent intraday low at 1897.25 fell considerably shy of the 1880.50 Hidden Pivot we’ve been using as a minimum downside target. It is still valid, however, and will remain so unless the point ‘C’ high of the pattern with which it is associated, 2011.75, is exceeded to the upside. More immediately, the recovery generated a bullish impulse leg on the hourly chart that could eventually offer a trade set-up. I’ve sketched this hypothetically in the chart shown, and night owls should look for a small-pattern ‘camouflage’ entry signal to get long if one trips on the hourly chart. _______ UPDATE (Friday, 1:40 p.m. EDT): An entry signal was tripped at 1919.00 at around 6:30 p.m. Thursday, based on a pattern similar to the one I’d drawn; thereupon, a second ‘mechanical’ opportunity to get long occurred at around 10:15 p.m. The subsequent rally hit 1951.00 around 5:00 a.m. (surprise, surprise!) Friday, giving way to a pullback and a tedious, flaccid follow-through attempt that has eaten up most of today. Theoretical potential was to D=1963.75 (where A=1918.00 on the 60-min), but this would imply getting past two Hidden Pivot impediments at 1947.25 and 1955.75 that looked too daunting for the daytime shift to handle.
