We’ll give the December contract a little more leeway to the downside, lest we get fooled into turning negative prematurely. The pattern shown is of greater degree than the one we used earlier that had allowed room down to 1162.50 before generating a bearish impulse leg.  This one has a prospective point A low at 1151.30, and a pullback to within a point or two of it could set up the kind of low-risk buying opportunity that we look for. If the futures should instead hit 1173.30 on a rally without going any lower, that would turn our short-term trading bias bullish. ______ IMPORTANT UPDATE (Saturday, 3:35 p.m.): In the chat room just now, I have raised the yellow flag. Specifically, check out my 13:06 post concerning a danger signal flashed by a chartist colleague of mine whose technical work I greatly respect.  Not a subscriber? Click here for a free two-week trial subscription. It will give you instant access not only to all of Rick’s daily trading ‘touts’ and intraday updates for stocks, options and index futures, but to a 24/7 chat room that draws veteran traders from around the world..