Shifting to the June contract, a 2016.00 rally target comes into sharp focus. This is equivalent to the 2025.50 target I flagged last week for the March futures. The rally pattern itself is quite clear and compelling, since both p and p2 picked up some precise hits last week. Traders can use p2=1981.31, stop 1969.75, to get long ‘mechanically’. However, you should attempt this only if you fully understand how ‘mechanical’ set-ups work, and only if Sunday night’s opening is more or less normal (as opposed to driven by some disconcerting headline). If the long position pans out and you make a few bucks on the way to 2016.00, you can reverse the position and get short there aggressively, since the target, a Hidden Pivot, looks like a high-odds place for a tradable top, even if it doesn’t turn out to be THE top. Incidentally, the 200-DMA for the S&P 500 cash index comes in around 2023 right now. That would roughly coincide with the 2016.00 target for this vehicle.
