The futures were unusually gracious on Tuesday, topping just 1.00 point above the 2062.50 rally target I’d sent out the night before. If you went short at that price using the very tight, 2064.25 stop-loss I posted in the chat room at 12:05 p.m., you could have reaped a gain of as much as $1050 per contract over the next three-and-a-half hours. So now what? The stall almost precisely at the midpoint pivot (p=2062.50) confirmed the two remaining targets of the bullish pattern shown. It projects to as high as 2126.25 over the near term, provided the futures can get past p=2062.50 easily. A pullback to that number following an upthrust to at least 2072.00 would be a ‘mechanical’ buy, stop 2051.50. You’d be shooting for at least p2=2094.25 at that point, or possibly even 2126.25 — equivalent to a 700-point Dow rally from these levels. Since the initial theoretical risk would be nearly $600 per contract, you should check in the chat room for an alternative ‘camouflage’ entry strategy in real time when appropriate.
