Although a rally target at 1416.70 remains outstanding, last week’s moderate selloff warrants caution because it came from a top that fell within $5 of the 1382.80 target shown. It also completed an ABC pattern that has taken six months to play out. A correction of at least two to three weeks’ duration would be normal under the circumstances, but that will vary according to how much power is pushing this possible baby bull. In any case, if the futures were to close above 1382.80 by next Friday (or so), that would imply buyers are raring to go, all but guaranteeing a further push to 1416.70 and beyond. _______ UPDATE (July 18, 7:56 p.m. EDT): Minor weakness, if it occurs, could push this vehicle down to 1311.90, where it would become a presumptive buying opportunity, stop 1311.30. On the hourly chart, here’s the pattern: a=1348.00 (7/13); b= 1320.40 (7/14); c=1339.50.
