The futures reversed sharply without having reached the 1352.10 correction target noted in my last tout. The rally created an impulse leg on the hourly chart that is sufficiently robust to justify using the bullish pattern shown. This implies that a pullback to the green line (1364.50) would trip a ‘mechanical’ buy signal, stop 1355.00. If the nearly $1000 initial risk seems too rich, consider using a ‘camouflage’ entry as an alternative. Incidentally, perhaps the best way to have gotten aboard the rally Thursday morning was by way of a ‘counterintuitive’ entry with a buy-stop at 1360.20, the trigger price of the small red ABC pattern shown. ______ UPDATE (August 5, 19:21 a.m. EDT): This morning’s knee-jerk reaction to ‘bullish’ payroll data has destroyed the bullish pattern noted above. Now let’s see if a new one is formed with a point C low above the original A. If it is just above it, that could set up a ‘counterintuitive’ buying opportunity. Currently, on the three-minute chart, the futures were a ‘mechanical’ short at p=1347.60, bound for d=1337.30 (where a=1366.60 at 8:27 a.m.) They’ll have a chance to bounce from p2=1342.50 momentarily.
