A short-covering panic drove the futures past the 2465.00 midpoint pivot with such force that nothing less than Armageddon could stop them from reaching 2533.00, the ‘D’ rally target of the pattern shown. The by-now obligatory pullback from p2 (2499.00) may provide an opportunity to get long overnight ‘mechanically’, but you may have to execute the trade at the red line with a 2450.50 stop-loss. Since this would imply $825 of of theoretical risk per contract initially, I’d suggest converting the signal to a ‘camouflage’ set-up. This potentially hard-to-execute trade is for Pivoteers only. _______ UPDATE (Dec 28, 3:55 p.m.): The unfulfilled target at 2533.00 remains valid in theory, although the ‘mechanical’ set-up we were looking for to get long did not materialize. As a practical matter, the uptrend was untradeable via a buy-and-hold strategy, since the marginally higher peaks that occurred intraday were followed by swoons of more than 40 points.
