Even with a strong downhill start at the opening, bears failed to hit their mark yesterday — a Hidden Pivot target at 1817.50 that I’d posted in the chat room Monday shortly before the opening bell, when the futures were trading about 35 points higher. The actual low occurred at 1821.75 — a 51-point plunge from Friday’s close. Some subscribers reported getting short for at least a part of the ride, however, on a rally to an 1884.75 correction target that came within a single tick of nailing the overnight high. At Monday’s close, the futures were in a mild short-squeeze that had yet to exceed the second prior peak we require to signal a proper impulse leg. But if buyers push this brick the few extra inches needed to get past the 1855.50 peak labeled in the chart, bears had better give them wide berth, since it would signal the likely imminent resurgence of buyers. Traders take note: A ‘bc’-type pullback from anywhere between 1855.75 and 1856.75 could provide a no-brainer entry opportunity for night owls looking to get long with minimal risk. I’ve sketched this hypothetically for your explicit guidance.______ UPDATE (10:57 a.m. EST): The futures have flounced around for the last 14 hours, negating the trade I’d suggested. They remain too squirrelly to care about at the moment.
