Monday’s grueling ups and downs left the futures tentatively poised to resume the presumptive dead-cat bounce from the bombed-out lows of August 24. It could go either way, I would surmise, but my bias is mildly bullish as of early Monday evening. That’s because, except for the bear-market leg down in August, all but a single abc pattern of lesser degree currently driving this hoax is bullish. The one shown points to 1971.50 over the very near-term, implying that catching a piece of the upside, such as it is, may be possible only for night owls. A mechanical bid at p2=1964.75 once p2 has been decisively exceeded for at least a couple of bars would require a stop-loss at 1962.00. _______ UPDATE (10:05 a.m.): And down we go. Sellers have broken a minor support this morning, but by enough to to lend authority to a far larger bearish pattern that we have considered here before. It is of course the implied C-D follow-through leg to the August selloff, and it projects to a minimum 1880.50, the midpoint pivot of the pattern. Below it is p2=1814.75, and thence D=1749.25. As noted in my earlier tout, the distance from each Hidden Pivot level to the next is equivalent to about 500 Dow points. On the hourly chart, the pattern begins with A=2085.50 on 8/19.
