Look for today’s moderate weakness to continue until the 2743.25 target shown is achieved. Night owls may be able to make hay with it by trading with the trend until the pivot is reached, or by bottom-fishing if and when the futures get there. Notice that the rally begun around 1:00 p.m. generated a very appealing ‘mechanical’ short when it reached the green line at 2758.44. The trade initially went $150 per contract in-the-red, but before day’s end it had produced a paper profit of as much as $550. Meanwhile, the decisive downside penetration of p has made a follow-through to D=2843.25 and odds-on bet. _______ UPDATE (June 22, 8:25 a.m. EDT): The futures reversed overnight after having exceeded by just a few ticks the p2 support shown in the chart. The reversal that followed has been a ratcheting short-squeeze that lasted the night and which is setting up for a second-wind squeeze to muscle through a shelf of supply created yesterday on the way down. It is all distribution as far as I’m concerned, clever and particularly opportunistic of light volume, so be careful.
