Friday’s feeble short-squeeze left me unpersuaded that the broad averages are about to embark on another bullish tear. Although the rally generated a weak impulse leg on the 15-minute chart, it failed to surpass any significant prior peaks on the hourly chart (see inset). Bears, it must be conceded, have not fared much better recently. Indeed, they spent the entire week struggling to achieve a modest downside target at 2029.75 that I’d drum-rolled last Tuesday. The expected bounce came an hour before Friday’s regular session began, off a low that was three ticks above our target. As a result, subscribers were denied an easy opportunity to get on board what could have been a $1200 ride. Even as the futures headed higher, I put out a lower target in the chat room at 2019.25. It remains viable, offering not only a precise price objective for traders who want to short this rally with risk under tight control, but a place to try bottom-fishing with the usual tight stop-loss.
