The futures made solid progress Friday toward a 2809.75 rally target that has served us well. It was our minimum upside objective when the March contract was trading nearly 100 points lower. It also tripped a ‘mechanical’ entry signal last week that I noted at the time. The clarity of this pattern, and the way the impulse leg conformed perfectly to our rules, made it an excellent teaching example. If it continues to behave as it should, we should expect a tradeable top to occur precisely at the 2809.75 target or very close to it. _______ UPDATE (March 12, 5:24 p.m. EDT): The futures sold off moderately after topping overnight at 2800.50, just shy of our longstanding target at 2809.75. It remains viable nonetheless, but the hourly chart would turn impulsively bearish on a print below 2730.00. [Note: The equivalent target for the June contract is 2816.50.]
