The futures consolidated on Friday following the previous day’s fleeting-but-potent short-squeeze. Notice that the high exceeded a key peak at 2011.75 recorded on September 17. If the high were a bull trap, the pullback might have continued, picking up steam by day’s end. Instead, we saw only a shallow correction that included two feints to marginal new highs. This suggests that bears were on the ropes the entire day and that it will take bearish price action in Asian markets Sunday night to alleviate their pain. If no such relief comes and the futures continue to chop without giving up much ground, look for further progress toward the 2030.75 rally target we’ve been using. _______ UPDATE (October 13, 1:06 a.m. ET): Monday’s taut oscillations brought no relief for bears who have been on the ropes since last Thursday’s short squeeze. I’ve been using the 2030.75 rally target of a large pattern, but for trading purposes, here’s a more finely nuanced picture with some precise stalls at 2013.75 that have confirmed the 2028.75 target. If the futures pop decisively above 2013.75 — say, to 2016.00 or better, I’d infer that they’re on their way to at least p2=2021.25, or possibly 2028.75. Traders could get long ‘mechanically’ at either pivot, and it is implied that short-term shorts should exit using the same signal. _______ UPDATE (11:05 a.m.): Just a small change because of this morning’s gratuitous swoon: midpoint resistance (p) has migrated up to 2013.75, p2 to 2022.25, and D to 2030.50. Since the D of this small pattern is now precisely coincident with the D target of the larger pattern we’ve been using all along, the number’s ‘magnetic pull’ presumably has increased.
