The March contract on Tuesday exceeded a long-term target at 2270.00 by three points, a  seemingly modest feat that could have very bullish implications going forward. Although the small overshoot was not sufficient for us to regard the 2270.00 Hidden Pivot resistance as conquered, the slight breakout should be regarded as a shot across the bow of bears who might be looking to get short at these levels or to hang onto existing short positions.  They could breathe a little easier if the day’s record high at 2273.00 endures and the futures fall beneath 2259.50 on Wednesday. But if buyers instead push this vehicle still higher and close it above 2270.00, that would be warning shorts to dive for cover.

There is a corresponding target at 2299.00 for the December contract, in which we hold a single-contract tracking position that is showing a theoretical gain of about $8000 after adjusting for partial profits taken on the way up.  But even if the December futures stall and reverse from 2299.00, the March contract would at that time be trading a decisive 25 points above its 2270.00 target. This would have quite bullish implications into year’s end, at least. Traders should use the pattern shown to exploit any further strength Tuesday night or Wednesday. It shows a minor rally target at 2283.75 that can be exploited with a ‘mechanical’ entry at either the red or green line. If you’re unsure about how this tactic works, stay tuned to the chat room, since quite a few subscribers have been actively trading the E-Minis. As always, an easy push past clear Hidden Pivot resistance should be taken as a sign that the trend will continue at least to the next — in this case to at least 2309.50 (30-minute chart, A= 2075.25 on 11/9; B= 2208.25 on 11/30; and C= 2174.25 on 12/4).  That number too has the potential to mark an important top, but bears shouldn’t count on it too heavily, given that the bull market has been chugging along since 2009. If you do plan on shorting there, I’d suggest cushioning the stop-loss with profits made by being long on the way to it. _______ UPDATE (Dec 14, 6:05 p.m. ET):  Bears can breathe a mild sigh of relief, since the futures fell to a so-far low of 2243.00 after having gone no higher than 2273.00 (see above).  Before you break out the bubbly, though, I’d suggest reacquainting yourself with the hourly chart shown (inset), since it allows for a projection in the days ahead to as high as 2309.50. Your trading bias should be neutral at the moment, since there are some wicked crosscurrents in evidence. Although the selling turned the hourly charrrrrt impulsively bearish, the bigger picture remains bullish and calls for a ‘mechanical’ buy at 2241.75, stop 2219.00. I’ll suggest this trade only for subscribers who made enough on the way up to cover the $1100-per-contract entry risk. (For the record, the tracking position we held in the December futures was stopped out at 2264.75 shortly after 2:00 p.m.. The theoretical profit on the trade was $8875 before commissions.) ________ UPDATE (Dec 15, 9;46 a.m.): Cancel the ‘mechanical’ trade for now, since my gut is telling me there will be a better entry opportunity next week. _______ UPDATE (Dec 15, 7:40 p.m.): The futures rallied after going no lower than the midpoint Hidden Pivot support of the minor downtrend from Wednesday’s top. Coming from where it did, the bounce is incipiently bullish but would become significantly moreso if the week ends with a close above 2273.00. That would put the target at 2309.50 well in play as next week begins.