If the Cubes fall to the 135.86 Hidden Pivot support shown, it would be the first time in a very long while that a corrective pattern in this vehicle reached its ‘d’ target. Although that isn’t necessarily bearish, it does suggest that the manic buying that has driven the broad averages higher in recent months may be losing steam. Another possible scenario in the days ahead would be for the decline to breach the target decisively, meaning by at least 2-3 points –or, heaven forbid, close for two consecutive days beneath it. Meanwhile, based on reports in the chat room, subscribers still hold some put options purchased Monday for as little as 0.45. Since they traded as high as 3.10 on Tuesday, you should be out of most of them by now. I’d advised saving one or two until Friday, when they will expire, and am still suggesting that you stick with that plan. _______ UPDATE (Jun 28, 9:04 p.m. EDT): A moderate rally pushed the Cubes out of the danger zone, leaving them in position for a shot at the 145.50 rally target shown. A close above the red line, a midpoint Hidden Pivot resistance at 141.49, would make a run-up to that number on Friday or Monday likely. _______ UPDATE (Jun 29, 10:03 p.m.): The Cubes surprised– me, at least — by heading sharply lower, leaving a still-valid correction target at 135.86 unfulfilled (click here for chart). The subsequent bounce — still in progress — would need to exceed 140.22 to leave bulls in a commanding position ahead of the holiday weekend.
