Just when a rally to a middling Hidden Pivot target had begun to look all but certain, the futures vexatiously fail to deliver. They’ll have another chance on Friday, but we should be open to the possibility of a multi-day decline that puts the target at least temporarily out of reach. Regardless, and unless the broad averages sell off hard for a week, we still have two Hidden Pivot objectives in play: 2824.00, or 2848.25 if any higher. I’ve included a long-term chart (click on inset) that shows a third, well-defined target at 2868.50. The chart is a blended composite, so the target should not be expected to work precisely. However, it is close enough to the 2848.25 target given above to imply there’s considerable stopping power somewhere in-between. Meanwhile, I’m as curious as you are to see how stocks behave ahead of the weekend, so let’s simply enjoy the show and try to glean what we can from it. ________ UPDATE (Jan 21, 5:03 p.m. EST): Friday’s moderate rally did not change my outlook or the analysis given above. _______ UPDATE (Jan 22, 8:23 p.m.): Still no change. The rally is too steep at this point to catch a ride, unless perhaps by way of a ‘camouflage’ set-up that would require your diligent attention to the 5-minute (or less) chart.
