Bears were hanging on the ropes and bleeding badly at the closing bell. Seconds later, their prayers were answered when AMZN released a downbeat earnings forecast for the holiday season. The futures fell 40 points over the next two hours — less steeply than AMZN, to be sure, but still sufficient to activate the bearish pattern shown. It points significantly lower, to 2629.50, a 1.6% fall from current levels. Judging from the way sellers shredded the Hidden Pivot midpoint support at 2676.63, the futures look like a good bet to reach the target. Traders please note: A corrective rally touching the green line (2700.19) would trip a ‘mechanical’ short, stop 2723.75. _______UPDATE (Oct 26, 8:23 a.m.): The signal is valid only if the rally comes from our proprietary ‘sweet spot’. In this case it did not.
