The futures have broken down again and could now fall to as low as 150^03 before finding traction. The corrective pattern shown is not very intuitive, but I’ve chosen it nonetheless because it has features that I like, including a rally precisely to p yesterday after the pivot was breached Tuesday afternoon. The futures became a ‘mechanical’ short at that point for a ride down to 151^14, a secondary pivot that can serve for now as our minimum downside target. If you want to try bottom-fishing there I’d suggest a three-tick stop-loss. If 151^14 gives way easily, the 150^03 target will be in play. _______ UPDATE (September 17, 9:45 p.m. EDT): The futures trampolined sharply higher yesterday off a bottom at 151^25 that was well above my 151^14 target. This is a positive development, but let’s make bulls push the rally to at least 156^03 before we infer that the correction begun in early April is over. _______ UPDATE (September 24, 7:46 p.m.): Very impressive indeed! The futures exceeded a clear Hidden Pivot target at 157^08 with yesterday’s surge, implying that the 165^29 target of a far larger pattern is now in play. Odds of reaching it will shorten if bulls can blow past the 158^27 midpoint resistance associated with the target. The pattern displays nicely on the 240-minute chart, where A=147^13 on July 13 (see inset).
