I put out a bearish target at 2663 Sunday night, but today’s price action was bullish enough to warrant a fresh perspective, at least for the near term. The short-squeeze in the final minutes of Monday’s session suggests bears are mildly on the ropes, and that they will give the rally the boost it needs on Tuesday to reach the 2750.50 target shown. That’s just little stuff, although an easy move past it would imply more upside to targets of patterns of larger degree. In the meantime, night owls may have an opportunity to get long ‘mechanically’. In this instance, it would entail bidding on a pullback to the green line (2711.50), stop 2698.25. Ideally, the futures will have gone no higher than 2731.00 (or so) in the interim._______ UPDATE (July 3, 1:18 p.m.): Cancel the trade. Although the futures fell at day’s end to within two ticks of the 2711.50 trigger price, this occurred after overnight price action had diminished the power of the impulse leg. Expect very subdued price action as we head into week’s end following a Wednesday holiday._______UPDATE (July 5, 5:24 p.m.): We’re using a 2748.25 target now. Here’s the chart. A subscriber reported getting aboard the rally ‘mechanically’ for a profitable ride from x=2720.00, but I am not tracking the position because no one else appears to have done the trade.
