The futures would become a very enticing ‘mechanical’ buy, stop 2412.25, on a pullback to the green line at 2429.25. You can use the signal to craft a camouflage entry that would reduce the initial risk by as much as 90%, but I’m more interested in how this set-up plays out. The overall look of the pattern suggests it is a very good bet to reach the ‘D’ target at 2456.00. If not, and the September contract falls beneath 2412.50 first, we could infer that serious weakness may be about to emerge._______ UPDATE (Jun 21, 4:58 p.m. EDT): The futures tripped the mechanical buy signal in the manner described above, but we’ll remain on the sidelines and simply observe what happens next. A fall below 2412.50 would imply that trouble is brewing. _______ UPDATE (June 25, 6:30 p.m.): Zzzzzzzzz. No change in the analysis given above.
