The 2047.25 rally target shown in the chart (inset) doesn’t square precisely with a comparable target that I’ve furnished for DIA, but it should be close enough to attempting shorting there with risk under very tight control. The ABC rally pattern has worked quite well so far, most recently by way of a p2 pivot at 2024.94 that nailed the intraday high within a single point. It also provided an easy ‘mechanical’ entry for longs at the 2002.63 midpoint Hidden Pivot. There are two possible trades remaining here: a mechanical buy on a pullback to p2 after it has been exceeded by perhaps 6 or 7 points for a few bars; and a short/exit at 2047.25. As always, you can step up your position size and widen the stop-loss on the short if you’ve been long on the way up. _______ UPDATE (3:00 a.m.): See the chat room discussion starting at 2:53 a.m. for my thoughts on an alternative target at 2045.50. _______ UPDATE (March 17, 6:41 p.m.): No change, since Thursday’s rally, masterfully staged by DaBoyz off a very low-volume bottom overnight, continued to track the Hidden Pivot levels shown in the chart (see inset). If you are long if and when the futures reach the alternative target at 2045.50, short there with a stop-loss at 2048.25 (or perhaps somewhat higher, depending on your appetite for risk). I will update if the futures appear to be settling at the target toward the end of the day, since that would increase the risk of the trade.
