A rally with 40 points of potential — equivalent to about 320 Dow points — looms if the futures are about to fulfill the 2512.00 Hidden Pivot target shown. However, the move through the midpoint pivot at 2457 was labored, implying that a quick ascent to 2512.00 is somewhat unlikely. Accordingly, we should be ready for a ‘surprise’ reversal, which would begin to look menacing if it exceeds 2448.00 to the downside._________ UPDATE (Jul 24, 5:12 p.m. EDT): Zzzzzzzzzzzz.________ UPDATE (Jul 25, 5:47 p.m.): Use a less ambitious rally target at 2491.00 for now. If the futures close above the 2477.00 midpoint resistance with which it is associated, that would imply the target is likely to be reached. A pullback to 2469.75 would trip a ‘mechanical’ buy signal, stop 2462.50, but you should do the trade only if you understand how to convert the buy signal to a ‘camouflage’ entry with $60 or less of initial theoretical risk.
