The quirky rally pattern shown is the one I’m suggesting you use for now, since it allows sufficient room for more frivolity like Tuesday’s. If the 2115.00 target is achieved by Thursday or Friday as I expect, it would equate to an approximately 300-point Dow rally. Judging from the way buyers impaled the red line, a midpoint Hidden Pivot at 2068.50, I’d say the odds of a follow-through to the target by week’s end are around 80%. That means x, p and/or p2 can all be used to get long ‘mechanically’. If you do so at p, a 2053.00 stop-loss would be required; if at p2, the stop would be at 2084.00; and if at x, then 2021.75. You should attempt this trade only if you completely understand the rules governing ‘mechanical’ entries. One further note: 2115.00 is by no means a likely terminus for this rally. Using the 1958.00 low recorded on March 10 as an alternative point ‘A’ low yields a rally target of 2169.25, with midpoint resistance at 2095.63 and a secondary pivot at 2132.44. This lower point A is far more compelling visually than the one at 2012.25 shown in the chart. _______UPDATE (May 25, 7:06 p.m. EDT): Today’s Whoopee Cushion rally left my analysis and forecast (see above) unchanged.
