There are three alternative rally targets in addition to the one I’ve selected at 217.21, but price action at the p midpoint pivot persuaded me I’ve got it right. There is not much of a spread between the lowest and highest possibilities, so the choice of targets won’t make too much difference in our game plan. Still, if our plan is to get short by buying puts at 217.21, we may as well try to do so without experiencing pain or stress. For now, however, use p2=213.82 to get long ‘mechanically’, provided you know how it’s done. If not, query me or any other Pivoteer in the chat room for guidance in real time. Making a few bucks enroute to the rally target will allow us to widen the stop-loss if and when we attempt to get short. Eight put options at the 217 strike, with 2-3 weeks left on them, is what I’ve got in mind.________UPDATE (Jun 21, 5:07 p.m.): DIA pulled back to p2 too quickly to set up a proper ‘mechanical’ buy. We’ll put it aside for now and simply look to get short if the 217.21 target is closely approached. The weakness of the past two days would become technically significant if DIA were to fall below 212.75. That would generate a bearish impulse leg on the hourly chart for the first time since mid-May.
