Tuesday’s seemingly pointless chop actually created a bullish impulse leg on the hourly chart, although anyone who slept through the process should be held blameless. I’ve sketched a hypothetical ‘counterintuitive’ entry set-up for your guidance, but I would caution against using it unless the point ‘C’ low falls within the range 1339.00 – 1340.00. _______ UPDATE (August 24, 9:00 a.m. EDT): The trade tripped at 1341.90 (4:00 a.m. EDT) and got within three ticks of the 1344.40 midpoint pivot where partial profit-taking would have been appropriate. However, it’s doubtful anyone who took the signal would have escaped the extreme, $11 downdraft that occurred moments ago for who-knows-what reason. I’ll wait till I hear from traders in the chat room before I score this one, but I won’t be tracking it.
