ESM18 – June E-Mini S&P (Last:2776.50)

The precise stall at p=2750.25 will make this an easy call:  If the ‘hidden’ resistance is breached, you can bank on a further rally of at least 75 points to D=2825.50. It’s always possible, of course, that buyers will chicken out on the first attempt. But if they push past our benchmark by 15-20 points and then pull back to the green line, that would set up a very appealing ‘mechanical’ buy, stop 2674.75. Notice as well that this latest rally surpassed a key external peak at 2744.00 recorded back in March. That makes the rally very bullishly impulsive — yet another reason for a strong bullish bias here, even if a correction intercedes for a few days this week. _______ UPDATE (June 6, 10:33 p.m. EDT):  The trade mentioned above could come into play, since today’s upthrust exceeded the midpoint pivot by 25 points.  If you trade the E-Mini S&Ps and you’re keen on leveraging this set-up, please let me know in the chat room, where real-time guidance is possible. ________ UPDATE (June 7, 11:00 p.m.): The 2825.50 target remains valid, but if the futures go any higher than today’s 2779.75 peak, I will cancel the mechanical bid at 2712.50. _______ UPDATE (June 10, 11:10 p.m.): I’ve raised the possibility in today’s commentary that bad news emanating from G7 could cause stocks to reverse the rally of the last two  weeks. If so, here’s a chart that shows how far the futures could fall. A decline to the green line (2715.94) would trip a theoretical short to p=2652.13.