Yesterday’s silliness-on-steroids produced a steep selloff in the final hour, but it was the apex of the rally that caught my attention. As you can see, it easily exceeded a clear D rally target at 2002.75 before DaBoyz pulled the plug. That leaves me feeling mildly bullish ahead of Friday’s opening, and so I’ll proffer the optimistic ABC pattern shown as the one to use today for trading and analytic purposes. Deploying our ‘counterintuitive’ tactic, the most opportune buy would come at the conventional point ‘x’ of the still-developing pattern, most particularly if the point C low falls just above point A. I doubt the futures will drop quite that far, however, which means you should also be ready to bottom-fish p=1961.00 with a tight stop-loss. Night owls who happen to be short ahead of the implied dive can bottom-fish more aggressively and with a somewhat wider stop. _______ UPDATE 4:13 p.m. EDT): The following pattern, with a 1932.25 downside target, has been very precisely confirmed by the strong bounce from within a single tick of its p2 (1941.00): a=1979.50 (5:34 a.m. EDT); b=1944.25; c=1967.50. If the bounce gets past a couple of ‘externals’ — let’s use the one at 1958.75 for a benchmark, I’d infer the futures are back on track for a test of the old highs. This is inferrable from my having lower-cased the coordinates, implicitly suggesting that today’s downtrend is corrective rather than impulsive.
