We’ve been using a 2169.25 target which, at the time it was introduced a couple of weeks ago, implied that the Dow Industrials were about to tack on 700-points. That has yet to pan out — the futures have come about 20% of the way so far — but the new chart accompanying today’s E-Mini S&P tout shows what could happen if the rally goes out of control. The 2250.00 target, which lies about 153 points above Friday’s settlement price, is equivalent to a 1200-pointer in the Dow that would hit 19,000.  Keep in mind that you are hearing this crazy prediction not from some wild-eyed bull who thinks stocks are a terrific buy at these levels, but from an inveterate bear who thinks a 10,000-point drop in the Dow would feel right as rain. Who would you rather believe?

Against all logic and the law of gravity, how likely is such a move?  I’d need to see a thrust past the 2136.00 ‘midpoint Hidden Pivot’ to become a true believer, but even now it’s hard to deny that the futures appear to be consolidating above the green line, where a theoretical ‘buy’ signal was tripped. Whether or not they eventually make it to 2250.00, the chart dictates that our current bias be unskeptically bullish if we are to make the most of whatever wilding spree might lie ahead.  We’ll be looking closely for ‘mechanical’ and ‘counterintuitive’ buying opportunities in real time, so stay close to the chat room if you want to be prepared to take advantage of any low-risk opportunities that develop. _______ UPDATE (June 6, 7:48 p.m. EDT): Today’s upthrust decisively cleared the 2095.63 midpoint Hidden Pivot associated with the 2169.25 target noted above. The pivot can be used to get long ‘mechanically’, provided the set-up meets our simple criteria for this type of trade. Ask for details in the chat room, since the technique is proprietary. The 2250.00 target of a larger pattern also remains viable, although it still needs to be confirmed by a push above 2136.00. More immediately, traders should check my 19:55 post in the chat room for a potential day-trade short from a lower level.