The weight of selling remained palpable at the close, so we should expect even lower prices on Wednesday. My immediate target is 2808.50, and you can risk a theoretical $460 shorting one contract mechanically at 2836.50, stop 2846.00. The relevant pattern, derived from the hourly chart, is a= 2868.25 (1/29 at 2:00 p.m.; b= 2831.00 on 1/30). The inset shows how far the futures would need to fall to generate a bearish impulse leg on the daily chart. Exactly 92 points, actually — equivalent to a plunge in the Dow of nearly 800 points. ______ UPDATE (10:58 p.m.): Shorts are getting squeezed hard tonight, so I’ll recommend canceling the trade suggested above. The 2808.50 target will remain viable, however, as long as 2845.75 is not exceeded.
