Bulls quit buying midway through Friday’s session after having failed to get close to the previous night’s high. Moreover, the intraday low made just before the closing bell slightly overshot a Hidden Pivot support at 2071.00 — the lowest target I could have projected for the day. This suggests there’s more selling to come. Don’t be surprised, though, if DaBoyz try to manipulate index futures higher Sunday night in order to distribute stocks at better prices than they’d have gotten Friday afternoon.
From a technical standpoint, the weakness generated a minor, bearish impulse leg on the hourly chart. This has occurred twice in the last two weeks; in each instance, however, the selling gave way to a bullish reversal after going nowhere. In this case, the weakness would become interesting if it exceeds the ‘external’ low shown at 2051.25. Paradoxically, it would also become buy-able via a mechanical bid at 2048.25, the midpoint pivot. Since the implied stop-loss would be at 2026.25, I’ll suggest using a ‘camouflage’ set-up to cut entry risk down to size. For real-time guidance, tune to the chat room for if the correction gets close to the pivot.