Eight years-plus into a bull market, I hesitate to say I’m in love with the 2457.75 rally target shown in the chart. But as far as Hidden Pivots go, there’s no denying it’s a beauty. What this implies is that I consider it unlikely the uptrend will bulldoze its way past this ‘hidden’ resistance without a tradable pullback from perhaps within a point or two of it. You can attempt shorting there with the usual penny-ante stop-loss, but if you’ve been long at least part of the ride north, don’t be afraid to step up your position size and widen the stop-loss to as much as three points. For purposes of getting long ahead of the prospective move, a ‘mechanical’ bid at p=2387.75, stop 2364.25, will suffice. However, I’d suggest converting any mechanical entry signal at p2=2422.75 into a ‘camouflage’ trigger that caps risk at no more than five ticks ($62) theoretical per contract. _______ UPDATE (Jun 6, 5:01 p.m. EDT): The day ended with a bearish impulse leg on the hourly chart. Night owls can use the 2423.25 target shown to bottom-fish with a stop-loss as tight as two ticks. If it’s hit, look for more weakness on Wednesday.
