Vigorous as the rally might seem, it is suspect because the “booster stage” failed to exceed last Tuesday’s 1907.50 peak. This suggests that the futures are in a dead-cat bounce, notwithstanding the fact that short-covering could drive stocks significantly higher than we might deem logical before petering out. From a Hidden Pivot standpoint, I am unable to recommend trading the pattern shown, simply because it is not a valid pattern. That relegates traders to the rightmost edge of the chart, where the tiny ABC that I’ve sketched could conceivably set up a ‘camouflage’ entry.
