Use the chart shown to get a precise handle on this wicked move. The pattern is pretty gnarly, but the precise bounce from the midpoint pivot at 2358.00 justifies using it. The implication is that the futures will fall to at least 2341.50 before they find enough traction for a bounce. Night owls should trade the futures from the short side, but please note that a ‘mechanical’ sell signal at the red line has yet to trigger. Ordinarily I’d suggest waiting for a rally to the green line to initiate, but this looks dangerous to me because a rally to the green line would be strongly impulsive. If you attempt bottom-fishing at D=2341.50, I’ll recommend a very tight stop-loss at 2340.75.
