Worried by Fed murmurings, index futures took a spill at day’s end after failing by four points to hit a bullish ‘trigger’ threshold at 2378.75 flagged in a tout sent out Tuesday night. The selloff is mildly impulsive so far on the hourly chart, but a further fall of just five more points from current levels to 2333.25 would significantly increase the power of the downtrend. There are no appetizing trading opportunities at the moment, but this could change overnight. The futures have been down by as much as 8.50 points this evening, but DaBoyz still seem to be groping for a bottom where sellers are exhausted. Wherever that low occurs, it’s a safe bet that it will generate a short-squeeze attempt. If that occurs before the opening bell, it would have bearish implications for Thursday. Incidentally, the June contract was a juicy ‘counterintuitive’ short at 2359.25 late in the day off this pattern: 60-min, a=2378.75 on March 21. It’s never too soon to start thinking about ‘CI’ trades in reverse. We’ve gotten too used to buying the rallies.
