Squirrelly as the futures have been, they remain fairly predictable (check the time stamps on yesterday’s tout if you’re skeptical). We anticipated that DaBoyz would come bounding back after yesterday’s 400-point plunge, and so they have. Now, they need only exceed 1929.75 to generate a robustly bullish impulse leg on the hourly chart — a modest feat that seems all but certain, given Thursday afternoon’s running start. Night owls can use the pattern shown to get long ‘mechanically’ if the futures pull back to the 1911.75 midpoint pivot. A 1908.25 stop-loss would apply with a 1922.50 objective, but my gut feeling is that the ‘small’ stop could be used to shoot for 1933.25, which would effectively halve the theoretical risk:reward at entry. ______ UPDATE (10:57 a.m. EDT): The usual bunch of nitwits savaged the futures on weaker than expected jobs data. We have trouble imagining who could conceivably have been expecting ‘strong’ jobs data, given that the only jobs the alleged economic recovery has created are on Wall Street and behind luncheon counters. For the record, the low of the swoon-in-progress was the midpoint pivot of this pattern, as you can see for yourself: A=1951.00 (9:25 at 5 a.m.); B= 1861.00 (9/29 at 3:00 a.m.); C= 1921.50 (10/1 at 4:00 a.m.). One thing’s obvious: The best time to short this hoax is before the opening.
