Friday’s fleeting, fake-out surge to nowhere peaked precisely at the 2379.75 midpoint Hidden Pivot shown, implying the pattern can serve as a useful template for trading and forecasting this vehicle as the new weeks begins. The pullback to the green line was a ‘mechanical’ buy in theory, but we passed up the opportunity because it seemed unlikely that DaBoyz were going to press their luck with a strong close as the week ended. Sunday night-owls can attempt a mechanical entry nonetheless, stop 2353.75, since this evening’s price action looks too gentle to set up a dive to our stop. If the futures forge higher, pushing decisively past 2379.75 intraday, especially in the early going, expect the rally to continue to the 2405.50 target. That’s a potentially important number, since it closely matches a long-term target that I’ve reproduced in the chat room as an ‘epiphany’. You’ll want to get short up there, especially if reversing a long position, but it may also be possible to accomplish this using the put-buying strategy I’ve advised in the latest DIA tout. I’ll be switching to the June contract in any event, but I’ve stayed with the March for an extra day because of the precise hit at the midpoint pivot.
