Wednesday’s modest rally ws unpersuasive, especially since it came from a low on Tuesday that exceeded a clear Hidden Pivot correction target. I’ll be less skeptical if the futures can push above the 1291.75 midpoint pivot shown in the chart (inset). That would put them on course for a shot at 1325.20 over the near term. All three Hidden Pivot levels — x, p and p2 — can be used to get long ‘mechanically’ provided the set-ups meet our criteria. Please note as well that a rally exceeding 1309.00 would generate a powerful impulse leg on the daily chart by taking out a key peak from January of 2014 that I’ve labeled ‘the Matterhorn’.
