Tuesday’s ballistic surge reamed bears a new orifice. It also left no room for doubt about which direction the futures will be headed for the remainder of the week. Accordingly, I will now ask you to consider a rally pattern that implies new all-time highs are coming, probably within the next 7-10 days. If the 2439.00 target is reached, that would equate to a Dow rally of about 800 points. There’s always a chance the 2378.38 midpoint pivot (see inset) will stop the rampaging herd in its tracks. But I wouldn’t encourage betting on it. Instead, we’ll focus on buy-side opportunities in the days ahead, using the green, red and pink lines as needed to set up some low-risk entry triggers. Stay tuned to the chat room for guidance in real time, since there are more than a few Pivoteers who will know how to make hay with such a promising picture. _______ UPDATE (Mar 29, 7:28 p.m. EDT): There was just enough buying interest today to torture bears with a steady drip…drip…drip of upticks. The rally projects to 2375.75 most immediately (click here for chart), although we should keep the much bigger picture in mind, tied to the 2439.00 target given above, if the futures continue to push through lesser targets with ease. Night owls can buy a dip to the green line (2355.50) ‘mechanically’, but we’ll want to consider a ‘camouflage’ alternative if this occurs during regular trading hours. If you do the trade, be sure to take a partial profit at p=2362.25. _______ UPDATE (Mar 30, 5:23 p.m.): Any subscriber who followed the simple advice above, placing a bid at the green line, could have come away with a profit of as much as $500 per contract. The trade could have been initiated at any time between 4:45 and 9:45 a.m. EDT. Click here to see it on the chart. The 2375.75 target remains valid and also implies a ‘mechanical’ buy at p=2362.25, stop 2357.75, was justified. Looking just ahead, the potential for the 2375.75 target shown in the chart accompanying today’s Morning Line to set up a ‘counterintuitive’ short should not be overlooked. If you’ve read this far and understand what I’m talking about, you should jump on this one if it sets up properly.
