The bullish pattern shown (see inset) is a beauty that meets all of our rules, implying that more upside to at least 2810.00, the pattern’s ‘D’ target, is very likely over the near term. However, that would leave the futures just shy of the key ‘external’ peak at 2814.00 recorded in mid-March. A decisive push above it would be quite bullish, since it would generate projections to as high as 2997.75 (equivalent to Dow 27,000). Another possibility to which we should be especially alert is for the rally to sputter out a few points above or below 2814.00. If so, we would take steps to prepare for a possible ‘counterintuitive’ short in the usual way — i.e., using SPY or DIA put options. Another scenario calls for a downturn from current levels followed by a plunge into hell. This seems unlikely, but we should be ready in any event. I mention it because Friday’s high occurred in a crucial spot, almost precisely at the 2768.00 ‘midpoint pivot’ of the big pattern projecting to 2997.75. We should know by week’s end whether the long-term bull market is about to get back in gear following five months of nasty chop since early February’s steep sell-off. Stay tuned for updates, the most timely of which will be posted in the chat room.______ UPDATE (July 9, 4:35 p.m.): If the stampede continues at its current pace the futures will reach the 2810.00 target drum-rolled above by no later than the end of Tuesday’s session. The rally’s trajectory hasn’t been this steep since early May and seems oblivious to headlines concerning trade wars. The ability of buyers to push this vehicle above 2814.00 is still crucial to the intermediate-term picture, as noted above.______UPDATE (July 10, 10:31 p.m.):  DaBoyz have pulled out the rug, sending the futures down as much as 32 points this evening. Bloomberg.com says it’s due to tariff fears, but what will the numbskulls say when the averages bound higher?  Tonight’s so-far low at 2765.75 low is manifestly where sellers ran out of fear, but the bounce in progress is occurring too early in the night to be sustainable.  Night owls can treat it as a brazen, shameless distribution and prepare for another leg down._______UPDATE (July 10, 10:49 p.m.): Short-covering has recouped half of the Monday/Tuesday selloff, affording DaBoyz a better opportunity to distribute shares  — and make no mistake, that’s what this rally is — than I’d thought likely.  So far, bears have stopped themselves out no fewer than 12 times by generating a tiresome series of new peaks on the lesser charts. This suggests they are shorting into the bounce, but it’s anyone’s guess when their mounting losses will discourage this behavior sufficiently to end it._______UPDATE (July 11,9:44 p.m.): The smell of distribution got even stronger as stocks failed to follow through on Tuesday night’s selling. Night owls should look for a possible ‘counterintuitive’ set-up to get short off Wednesday’s 2787.75 high. _______ UPDATE (July 12, 9:13 a.m.): The futures stalled for 75 minutes at 2787.75 just before dawn, but pulled back only four points before launching anew. For now, use this 2806.75 rally target as a new minimum objective, but also be alert to a possible stall at 2797.38, the midpoint picot of a somewhat larger pattern. It coincides with Tuesday’s high.