ESM16 – June E-Mini S&P (Last:2039.00)

The futures were an easy ‘mechanical’ buy on Friday, although bids needed to be positioned down around x=2035 rather than at p=2057, since DaBoyz had to take the futures 16 points lower in order to dry up sellers ahead of the obligatory short squeeze. The subsequent 32-point rally could have produced a relatively quick profit of as much as $1600 per contract. It also left bears on the hook Sunday night, not that they are likely to experience much pain initially. That’s because it has been several months since a Sunday night opening was other than extremely timid (even a rabid badger occasionally takesssss a rest). As noted here last week, stocks are either in short-squeeze mode or biding their time waiting to be squeezed about 95 percent of the time. Selloffs lasting more than a few hours are not merely rare these days, but non-existent. So what does this vehicle hold in store for us now? Most immediately, a possible ‘mechanical’ buying opportunity on a pullback to the midpoint pivot shown, at 2057.88, stop 2054.00. Your minimum price objective would be 2069.19, the secondary pivot, with a shot at D=2080.50. If the trade gets stopped out, I’ll suggest trying again at 2046.56, stop 2035.00. Please note that trendline resistance flagged here earlier will come in around 2083.00 this week. ________ UPDATE (April 5, 2016, 11:57 a.m. ET): The futures are retreating this morning after having gotten nowhere near the 2080.50 rally target noted above.  This is a hopeful and promising sign as far as it goes, a perhaps fleeting glimmer of what normalcy might be like if the central bank did not exist.