A 2439.00 rally target that we’d been using for weeks came within three ticks of nailing Friday’s top, but bears shouldn’t get their hopes too high. For in fact, the subsequent pullback was too shallow to suggest buyers are the least bit tired, and unless North Korea starts a nuclear war over the weekend, we should expect the broad averages to continue doing what they’ve been doing for the last 87 months — i.e., move relentlessly higher. There’s a minor Hidden Pivot resistance at 2440.75 that comes from a pattern gnarly enough to give it some stopping power, but if it is easily brushed aside we’ll need to use a new pattern with a 2457.75 minimum target to keep from getting fooled. A proper pullback to the pink line (p2=2422.75) would generate a ‘mechanical’ buy signal in theory, but to further reduce risk, I’d suggest using this tactic only on a full retracement to the green line (2252.75), stop 2317.50.
