We’ve been using a 2690.25 rally target to stay on the right side of the trend, but take a gander at today’s chart. It shows the very clear, 2665.00 Hidden Pivot target of a lesser uptrend that came within a single tick of nailing today’s fleeting high. In fact, it stopped a bull-trap short-squeeze in the opening minutes of the session dead in its tracks. I posted the chart in the chat room 18 minutes after the opening — too late for it to be useful for trading purposes. However, given the vigor of the sell-off that ensued, we should treat the day’s 2665.25 high as a potentially important top. Alternatively, if bulls prove us wrong for the umpteenth time, look for a run-up to new highs on Tuesday or Wednesday, presumably a downpayment on a bigger rally to the 2690.25 target noted above. _____UPDATE (Dec 5, 5:25 p.m. EST): Well, that’s two lovely down days in a row — something of a rarity these days. Let’s cheer on sellers Wednesday, giving them moral support as they attempt the hat trick.
_______ UPDATE (Dec 6, 8:42 p.m.): Three down days in a row was probably asking too much, no? The futures ended the day unchanged but were slithering higher Wednesday evening. If they exceed p=2650.38 decisively, look for a run-up to 2680.50 (15m, A=2605.00 on Dec 1, 11:45 a.m.).
