The futures would become an enticing ‘mechanical’ short if the sharp bounce off Tuesday’s bombed-out low hits the green line (2777.31). The implied initial risk per contract would be around $2400, but there are alternative ways to get aboard with far less at stake. Stay tuned to the chat room for guidance on this, but keep in mind that the pattern we would short implies there’s an odds-on chance that the rally is merely corrective and won’t surpass the 2824.25 point ‘C’ high._______ UPDATE (Oct 24, 7:24 p.m.): The rally we were looking for to get short under optimal conditions failed to materialize, but the 2636.50 downside target shown remains viable.
