The 2724.50 rally target we’ve been using seems within easy reach, but the futures have looked so tired lately that you should consider getting short off a ‘counterintuitive’ pattern like the one shown. Night owls in particular should pay close heed, since, if the trade triggers, it has a good chance of happening overnight. There are many ways this could happen, but instead of my trying to guess which, I’ll mark this one ‘for experts only’. _______ UPDATE (May 9, 10:03 a.m.): The futures are too sloppy to trade this morning, at least for me. Although I cannot come up with a Hidden Pivot rationale, even in retrospect, for getting short at this morning’s top, the fact that the futures rolled over from a high 2.50 points shy of the target is likely telegraphing more bearish action ahead. ________ UPDATE (12:04 p.m.): …or not. The futures now appear bound for the 2721.50 target shown in the link above. What threw me off was the 2.50-point miss mentioned in that last update. Given the sinuous, delicate perfection of the pattern, I am quite surprised that the stall did not occur within no more than a tick or two of the 2686.88 midpoint resistance.
