Sellers crushed the tight stop-loss I’d advised for a bottom-fishing trade Wednesday, ejecting us from the position with a theoretical loss of about $75 per contract. The futures went on to overshoot the 2554.75 target by a whopping 13 points, sufficient to imply that more downside awaits despite the short-covering rally into the close. It generated a ‘counterintuitive’ buy signal that I’d prefer to ignore, since the bounce has stalled this evening at p=2558.88. Immediate potential is to D=2576.25 if buyers can get past that hidden resistance, but I’m not going to hazard a prediction about whether this is likely to occur. _______ UPDATE (Oct 26, 10:15 p.m.): Zzzzzzzzz.
