Today’s rally was over in a relative blink, but not before it tripped a ‘counterintuitive’ buy signal at the green line (see inset) for a shot at 1374.50. I advised passing up the opportunity in the chat room, however, because I didn’t quite trust it. In retrospect, although the futures spent nine hours doing nothing after signaling the buy, the very shallow pullback that follows appears to have left shorts on the hook. They were pushing this vehicle higher Tuesday evening, presumably bound for the red line, a midpoint Hidden Pivot resistance at 1351.70. In fact, as we went to press, the buying spiked the December contract nearly $6 in ten minutes. To trade the rally, which points to 1356.20, I’d suggest using the Hidden Pivot levels shown in the chart-within-the-chart.
