Today’s moderate selloff from a high that fell 1.75 points shy of a clear Hidden Pivot is a warning sign that must be heeded. The failure was subtle, to be sure, but it should encourage us to keep an open mind toward the possibility that an important top is in. We’ll be better able to judge the odds once we’ve seen how the ABC downtrend in progress at Thursday’s close plays out. If the futures roll down overnight, exceeding their D target, that would confirm that the weakness is potentially serious. However, if the downtrend reverses from p or higher and the futures go on to exceed the 2168.00 peak (A), bears had better run for cover. The foregoing is speculative, since the hypothetical pattern I’ve sketched has not yet created a point ‘C’ high. It can serve to guide you nonetheless, particularly if you are a night owl looking for an opportune level to bottom-fish or get short.
