The rally sputtered out at week’s end just shy of a key resistance at 1940.00. The pullback from a 1933.50 peak has been mild so far, and that is bullish as far as it goes. On the other hand, the resistance remains intact, and we should not presume that it will be exceeded merely because it is there, taunting bulls, as it were. To gauge buyers’ resolve after index futures resume trading Sunday night, I’d suggest using the minor, bullish pattern shown, since it meets all of our criteria. An easy and decisive push past p=1924.50 would shorten the odds that the 1950.50 target will be reached. It would also imply that ‘mechanical’ bids can be used to get long to the target from p, p2, or both.
