The pattern shown looks quite reliable, meaning that a decisive move past the 2799.00 midpoint pivot shown (see inset) should clear the way to 2832.25, the pattern’s D target. The futures stalled at the pivot on Thursday, and it remains to be seen whether AMZN’s rampage will suffice to pull the broad averages along for another day — a Friday the 13th, as it happens. Elsewhere on the page, I’ve raised a yellow flag predicated on AMZN’s finishing the day head-butting its 1843.29 rally target. If so, I’ll recommend taking home a small short position either in this vehicle or in a companionable, equity-based instrument such as DIA (using put options). Be prepared to escape or to hedge your exposure on Sunday night if buyers should run amok. That’s a squeeze we should want to short — but on Monday morning, after it has run its course. _______ UPDATE (July 15, 5:08 p.m. EDT): We took no position, since both AMZN and the E-Mini S&Ps still have a ways to go before reaching their respective rally targets. If they get there simultaneously, I’m still recommending that you stake out a small put position in DIA. In the meantime, this vehicle would become a ‘mechanical’ buy on a pullback to the green line (2782.38), stop 2765.50. The order should be place after index futures begin to trade Sunday night.
