Thursday’s rally fell 3.50 points shy of our 2085.25 target, providing reason for caution. In practice, that means continuing to use 2085.25 to manage the risk of any bullish trades while simultaneously monitoring the very lesser charts for bearish impulse legs that could signal the beginning of an important trend change. As I noted here earlier, 2085.25 has the potential to mark an important top. However, there can be no guarantees that it will be reached. There is another potentially important resistance discussed here earlier at 2101.75 that is subject to the same caveat. Notice as well that the top of Thursday rally coincided precisely with a trendline we’ve been watching for several weeks. Unquestionably, the futures are at a very crucial level. As always, the best way to glean tradable information from nervous price action will be to view the ups and downs in terms of the impulse legs they generate on the lesser charts. Do this diligently and you will never, ever miss an important turn.
