The futures made scant progress toward our 2439.00 target on what turned out to be a remarkably slow Friday, but they remain on track nonetheless for a push to that number shortly after Memorial Day. The decisive move past the pink line, a secondary ‘hidden’ resistance, could set up a ‘mechanical’ bid there, stop 2398.50, but there would need to be an interval first that allows for a few more bars of ‘hovering’ before the futures can trip a proper buy signal via a pullback to the line. Since, on the 480-minute bar chart, this could take a few more days, you should consider using a ‘camouflage’ trigger to avoid missing a possible breakaway move on Sunday night or Monday. This wouldn’t necessarily change our odds, but it would guard against missing the trade if the futures take off with a lurch after barely correcting. _______ UPDATE (May 30, 11:58 p.m. ET): The futures have rolled down to the pink line, tripping a theoretical ‘mechanical’ buy signal at 2408.50, stop 2398.25. I’m not enthused about the trade, however, because it looks more weakness is needed to correct the steep run-up from the 2344.50 low of the Trump-is-failing dive of May 18. Under the circumstances, if you’re looking to get on board for the next rally, I’d suggest crafting a ‘camouflage’ entry trigger with the 5-minute chart or less to avoid the implied initial risk of about $500 per contract. _______ UPDATE (May 31, 7:36 p.m.): The mechanical trade mentioned above is working, but not in the easy way we should prefer. We’ll move to the sidelines until the nutty price action subsides. At the close, shorts were getting squeezed hard enough to provide at least a little carryover into Thursday.
