I predicted here earlier in the week that stocks were “going down!” even if bulls had to be dragged there kicking and screaming. Fortunately, they went quietly yesterday, providing a relatively low-stress day for bears from whom extraordinary patience has been demanded lately. Even more encouraging was that the downtrend was the first in a while to reach its ‘D’ target — in this case, the 2039.00 Hidden Pivot shown. The actual low at the end of the day exceeded that number by less than a point — not quite enough of an overshoot for us to infer that more weakness is certain. DaBoyz were promoting a weak rally at press time that has yet to develop. With any luck, it will sputter out and the futures will relapse to new lows. Alternatively, if the December contract continues higher, we can look forward to shorting any rally that flames out below 2087.50, the point ‘A’ high of a bearish impulse leg created on the daily chart by this week’s decline. It would take a little more upside, however, to suggest that October’s bullish surge is getting second wind. Specifically, the futures would need to close above 2089.75 or exceed that number intraday by at least eight points. For the benefit of Pivoteers, I’ve circled the two winning-est trades of the day, both of them using ‘mechanical’ entries to get short in a way that would have subjected Hidden Pivot traders to little stress.
