ESH17 – March E-Mini S&P (Last:2233.50)

sooner-or-later-the-algos-were-going-toLong-time subscribers may have noticed that the E-Mini S&Ps have smartened up recently, reversing direction not at Hidden Pivot supports and resistances as they should, but all too often from somewhere in-between. It took the math majors and algos a decade to catch on to this useful feature of the ABC pattern. That they finally were able to crack the Hidden Pivot code recalls the infinite monkey theorem: Sit a thousand chimpanzees at typewriters for an infinite number of years, and one of them will eventually type Hamlet.  And so they have. This means we’ll need to alter our tactics when trading this particular vehicle, which is the most over-scrutinized, over-traded and over algo’d of them all.  Doing so will require using patterns that aren’t quite so obvious as the one shown (see inset) — that are too gnarly for trading machines to discern. We should be grateful for the challenge this will present, since it’ll keep us on our toes while bringing us opportunities that don’t require bumping heads with trade-desk rabble and the hoi-polloi. Welcome to 2017! _______ UPDATE (Jan 3, 12:08 a.m.): Tonight’s rally will start to look convincing if it can get past p=2246.25, a midpoint Hidden Pivot on the lesser  charts that is tied to a 2252.00 target.