Friday’s monster rally hit the 1362.60 Hidden Pivot target shown to-the-exact-tick, so that could be it for bulls, at least for a while. A still larger pattern projects as high as 1450.00, and the easy move through its sibling ‘midpoint resistance’ at 1325.80 suggests we should take the target seriously. However, we should not allow ourselves to be teased by this prospect to the extent that it dims our technical judgment. Better to let bulls prove their case one step at a time, which in current circumstances demands a decisive move past 1362.60. We needn’t wait for such an event in order to do some cautious buying on pullbacks, however, since the tendency of abcd corrections that occur within bull markets is to reverse from the midpoint of the c-d leg. This telltale habit will afford us the opportunity to bottom-fish with theoretical entry risk held to $100 or less per contract. _______ UPDATE (June 27, 11:48 p.m. EDT): The futures appear to be consolidating just above the midpoint of Thursday’s ballistic thrust, but they’ll be challenged to find traction if index futures remain strong tonight. Key resistance lies not at the recent peak, but at a 1365.90 midpoint resistance just above it (60-min, A=1252.80 on 6/23). Alternatively, moderate weakness could be expected to come down to at least 1308.40 before we see an attempt to reverse.
