Today’s chart (click on inset) is persuasive on the matter of whether the S&Ps are likely to move higher. This seems probable, although not necessarily right away. The June E-Mini contract has pushed past a clear Hidden Pivot target at 2381.75, implying under our rules that it is being acted on by a pattern of larger degree. The rally target of that larger pattern lies at 2469.75, a 94-point thrust that would equate to a Dow move of about 800 points. Even so, we bought DIA puts at these levels because a target of even larger degree had been reached within two points. I like the odds, because the raging bull has been acting tired lately and even a few days of moderate selling could double the value of puts that subscribers acquired for an average 92 cents.

Putting aside the technical ephemera of the Hidden Pivot Method, you can simply look at the chart and sense that it is saying “Short me if you dare!”  Of  course, its glowering menace would vanish if next week the broad averages were to collapse. That will always be a possibility. But when you bet on it as we have, the wager should be small. I am no seer, just a technician and trader with a firm handle on the odds. Even so, I cannot make the claim that this market is incapable of surprising me. The scary fact is that it is well capable of surprising us all.  Still more scary is that that’s exactly what it is fixing to do.