Wednesday’s rally pushed past the three peaks shown, all of them ‘external’, generating a deceptively powerful impulse leg with relatively ease. Accordingly, pullbacks should be treated as buying opportunities, particularly by night owls able to exploit a relatively shallow B-C correction from within a tick or two of the so-far high at 2700.00 (i.e., a ‘camouflage’ set-up.) The 2721.50 rally target given here earlier still obtains and can be used not only as a minimum objective, but as a place to reverse a long position with a very tight stop-loss if you’ve profited on the way up._______ UPDATE (May10, 7:59 p.m.): The rally topped at 2725.00, just above our target. Usually I would say this is somewhat bullish, since the target was so precisely clear. In this case, though, I’ll reserve my enthusiasm, since the breach of the pivot was likely caused by too man traders seeing, and using, the same pattern we saw. And the lesson? Subtlety and gnarliness are our best friends when we look for patterns to trade this vehicle.
