Bears did what was expected of them Tuesday, driving the futures sharply higher with a spate of short-covering that should have caused DaBoyz to smile. The stock market is now entering day three of a global rally triggered by perceptions that voters will ultimately reject Marine LePen’s bid for the French presidency. It would seem to matter little, particularly on Wall Street, that Macron, her opponent and likely victor in a runoff scheduled for May 7, will have no mandate to govern. Still, as the thinking goes, at least he won’t deny France its proper role in presiding over the inevitable collapse of the euro and the EU. In the investment world, that would seem to count as good news these days. Looking ahead, we should expect the futures to continue their heedless ascent to the 2439.00 target shown. This Hidden Pivot has served as a lodestone since late March. Judging from the way buyers blew past the 2378.38 midpoint pivot on Wednesday, there should be little doubt that 2439.00 will be reached. A pullback to the red line before Thursday would not meet our criterion for a ‘mechanical’ entry, but there will be other ways to get aboard, so stay tuned to the chat room if you care.
