Thursday’s wacky, Whoopee Cushion bounce came off a low that missed my target by $1.80. The premature upturn was speculatively bullish, but the rally became manifestly so when it started exceeding prior peaks on the intraday charts. We don’t want to be too presumptuous, however, considering how violently bulls got shaken out, so I’ll suggest entry strategies that use small ABC patterns at the rightmost edge of the chart. The one shown, with an A low at 1297.80, has a play left to 1306.60, but leveraging this set-up could be more trouble than it’s worth. Instead, I’ll suggest waiting for a fresh A-B thrust that tops out between #1 and #2 before pulling back into a tradable pattern. That’s a narrow window to be hoping for, but if we get what we want, the result could be easy pickings. _______ UPDATE (Nov 6, 8:09 p.m. EST): Moments ago, the futures tripped a moderately appealing counterintuitive ‘buy’ signal by rallying from a deep hole back up to the green line (see chart, a new one). The signal can be ‘actualized’ in numerous ways, but night owls will probably do best to fashion a ‘camouflage’ entry trigger on the five-minute chart or less. Incidentally, the futures have rallied nearly $2 since I began typing this update, attracting more bulls and therefore warranting greater caution.
