Wednesday’s sharp rally easily exceeded the 1178.80 ‘snooze alarm’ level I’d suggested that bulls set. Although the futures have since relapsed Wednesday night and are currently trading $22 below the $1183 intraday high, this has done little damage to the hourly chart, much less to the daily and weekly, which remain quite bullish. Going forward, I’ll recommend using the pattern shown to judge whether bulls are turning things around quickly. Specifically, if they can push above the red line (p=1179.85) without first dipping beneath 1152.10, that would strongly imply the good guys are resurgent. _______ UPDATE (10:23 a.m. ET): A weak rally overnight from 1152.10 failed, crashing the support with a so-far low of 1150.40 as the regular session began. This implies more slippage to at least 1148.20, the midpoint support of this pattern on the 60-minute: A=1180.70 (3:00 p.m.); B=1152.10; C=1162.50 (3:00 a.m.). p2= 1141.00 here, and D= 1133.90, my worst-case target for the near term.
