Friday’s wild swings only added to the clarity of the bearish pattern shown. It points to 1496.61, which would equate to an 8.6% decline from current levels. Because the downtrend penetrated the 1670.96 midpoint Hidden Pivot support with such force, we should infer that more downside to at least D is an odds-on bet. It also implies that a bounce over the next couple of days to the green line (1757.98) would offer an enticing opportunity to get short via a ‘mechanical’ signal at that price, stop 1845.01. Because the implied entry risk would be nearly $9000 per round lot, we’ll look for alternative ways to get aboard. Using a ‘camouflage’ set-up, for one, we might expect to cut the risk down to a theoretical $1500 or so — or even less if we can substitute put options.
