There’s about a 70-point discrepancy between the 231.56 target and the one at 23226 that I’ve been featuring lately in the DJIA tout (see below). On balance, I’d use this vehicle to short them both, although in small enough size that you won’t feel much pain if the lower of the two Hidden Pivot resistances gets skewered. We never pick tops with the expectation of nailing the exact apex of a 91-month-old bull market, but the fun and excitement of trying is well nigh irresistible. In this case, the delicate sinuousness of the ABCD pattern is what drew my eye to the opportunity._______ UPDATE (Oct 18, 5:08 p.m.): DIA made its intraday high at 231.68, just 12 cents above our rally target. It is a very clear and compelling Hidden Pivot resistance, implying that any easy progress past it, especially ahead of the weekend, should be regarded as very bullish. _______ UPDATE (Oct 19, 8:14 p.m.): Today’s dive from within a whisker of my target turned into a swoon when DIA recouped the loss by day’s end. Buyers appeared poised to power the Indoos into no-man’s-land to end the week, but I’m not ready to give up on the notion that the broad averages are topping here. Let’s see how things play out over the next day or two before we throw in the towel.
