The futures have tripped a ‘counterintuitive’ buy signal at 2830.75, implying that a rally of about 70 points is developing. However, these signals work best when the rally pops quickly to midpoint pivot — in this case 2854.00. Instead, the futures fell slightly on Friday after hitting the trigger point. If they don’t get a new burst of energy on Tuesday with leap above p=2854.00, odds of a major breakdown beneath the trendline (see inset) will increase. Bottom line: It’ll be fly or die in the week ahead. ______ UPDATE (May 28, 4:30 p.m. ET): The futures broke down late in the session, but not before providing bulls long from 2830.75 with an opportunity to exit for a quick profit of more than $500 per contract. Now they are destined to fall to at least 2783.25, a Hidden Pivot support that must hold if bulls are to escape a sixth straight week of declines. Here’s the chart.
