The bullish pattern shown points to 2076.25, a target subject to crucial resistance at the secondary pivot, 2035.13. Regarding its legitimacy and authority, the pattern has two important things going for it: 1) its AB ‘booster-stage’ rally surpassed the required internal and external peaks, which I’ve labeled; and 2) the 1994.00 midpoint pivot has picked up two precise hits — first as resistance, then as support. Notice that if the higher target were to be hit, the rally would still fall shy of the record 2095.75 achieved last November. You can bet bulls and bears would skirmish up there, and that the former would not likely give up until they’d achieved at least a marginal new record high. By then, bears’ patience, if not to say their trading capital, would be completely depleted. At that point only bulls would still have something to lose, and that’s the argument for at least a nominal move above last year’s peaks before DaBoyz pull the plug.
In the meantime, swing traders should look for a ‘mechanical’ buying opportunity on a pullback to p that meets our criteria for this type of entry. Since the implied stop-loss would be at 1980.25 (predicated on ride to at least p2), I’d suggest crafting a more cautious entry trigger using ‘camouflage’. This would entail using the entry trigger on an ABC pattern of sub-5 minute degree once the ‘mechanical’ buy signal has taken effect.