With shorts caught in a mild squeeze at the bell, bulls will hold a small edge Tuesday night. If they can keep this vehicle buoyant until Wednesday’s opening, that will increase their edge when the regular session begins. Day traders can choose their opportunities as they arise, since they are likely to come from subtle changes in the chart that cannot be predicted at the moment. The chart shows a possible opportunity of another sort — i.e., one that would take shape if the futures should surprise by diving anew. The precise bounce from p2 suggests that a breach of this support would portend more downside to exactly 1952.25. This means you could bottom-fish with a 1952.50 bid and a stop-loss as tight as 1.00 point. ‘Mechanically’ shorting a retracement back up to p2 may also be possible, provided the rally it meets our simple criteria. Tune to the chat room for real-time guidance if you’re interested in the trade. _______ UPDATE (10:22 a.m. EST): The big, bearish pattern was drawn slightly wrong, with an erroneous point ‘C’. Shifting it to 2075.00 (12/29, 9:00 p.m.) yields D=1955.75, my target for now. Yesterday high turned out to have been a fabulous mechanical short at p=2015.38. Now, the mechanical short is from p2=1985.56, stop 1995.50.
