The gnarly pattern shown looks serviceable for the day ahead, with a 1235.10 target that looks very likely to be achieved. Keep in mind, however, that its easy breach would portend more slippage to the 1216.50 target of a larger, bearish pattern drum-rolled here earlier. The 15-minute chart has signaled a ‘mechanical’ short from p=1257.30, stop 1264.70, although a ‘camouflage’ entry is preferred due to the implied $740 of entry risk._______ UPDATE (10:39 p.m. ET): This evening’s so-far timid rally would have stopped out a ‘mechanical’ short from 1257.30; however, it has yet to exceed even a single prior peak on the hourly chart, let alone the two we require to generate a bullish impulse leg. That would take a push above the 1270.40 high made last Thursday on the way down. Even then, the 1235.10 downside target noted above will remain valid in theory unless the 1279.40 the point ‘C’ high of the pattern is exceeded. If all of these things were to happen overnight and the futures were to make additional headway during the regular session, that would be highly unusual — enough so to warrant our attention and enthusiasm._______ UPDATE (Oct 10, 9:14 p.m.): Having struggled to go lower for the last two days, the futures are positioned to turn the hourly chart bullish if they can pop above 1267.60 today.
