The S&P futures look more likely to rally or remain buoyant than to collapse any time soon. Actually bears would find themselves in trouble if the futures were to rally above the 2744.00 peak from March 21 that lies just above the green line (see inset). That would equate to a thousand-point Dow rally, and although it’s hardly a given at this point, we shouldn’t be so dismissive of the possibility that we would tend to overlook early signs of a short-covering build-up. It can start with modest energy, mutating into full panic as rallies approach prior peaks. For now, it would take a two-day close or a decisive intraday breach of p2=2573.44 to imply the futures are headed to the 2495.50 target. It was given here earlier as a minimum bear-cycle projection and remains viable.
