We’ll watch from the sidelines for now, since the futures have opened Wednesday evening in the grip of thieves, madmen and computer scientists. Trades in the first few seconds touched 2649.75, more than 50 points below Tuesday’s settlement price. But they have since rebounded by 40 points in mere minutes and are now diving anew. There is no good reason for us to get involved in this nuttiness. Hidden Pivot targets aside, my gut feeling is that the E-Minis will eventually test the trendline shown in the chart (see inset). It implies support near 2608, with a rising slope of about 0.40 points per day. That equates to a further fall of around 2.6% from current levels.______ UPDATE (Dec 6, 5:46 p.m.): The obligatory nutty bounce came off a 2621.25 low, but I wouldn’t bet too heavily against a test of the trendline near 2608. _______ UPDATE (Dec 7, 3:38 p.m.): With today’s nasty relapse, the trendline is looking better than ever. It will come in around 2609 early next week._______ UPDATE (Dec 10, 9:36 a.m.): The futures bottomed overnight at 2610.25, a ‘D’ Hidden Pivot I’d considered too minor to last. I still doubt it will hold. Although DaBoyz did a fabulous job exhausting sellers in the wee hours and short-squeezing ES for a nasty 35 points on near-zero volume, the’ point ‘A’ high of the pattern yielding the 2610.25 target does not look capable of producing an important low. Here’s a chart that illustrates why.
