Friday’s flatulence put a disappointing end to an otherwise impressive week that began with a wrenching, two-day short-squeeze. We’ll likely know by Sunday night whether the weakness is serious, but the failure of buyers to reach the minor, 2375.75 rally target shown in the chart was not a healthy sign. Bulls could negate it with a push past it that also clears the 2378.75 ‘external’ peak that I’ve labeled. Alternatively, if the futures were to fall beneath C=2348.75 without having reached the rally target, that would signal probable weakness for at least the next two days. And if they should fall without having exceeded last week’s 2366.75 high, expect the downtrend to hit 2336.25 before the trend reverses.
