The futures trampolined last week from 1.00 point above 2900.00, a round number whose psychological importance seems obvious in retrospect. They are bound now for the 2972.75 target shown in the chart (click on inset) and should have little difficulty getting there, judging from the way buyers blew past the midpoint pivot at 2937.00. Now, a pullback from the green line from no higher than 2949.50 should be used as a mechanical buying opportunity, stop 2900.75. ______ UPDATE (May 5, 6:21 p.m.): None of us imagined there was still bad tariff news out there to disrupt the markets, but that is exactly what has happened this evening with a bellicose tweet from Trump. This too shall pass, but the slimeballs who work the markets on Sunday evenings have taken the E-Mini S&Ps down 54 points so far in order to make certain that any buying they have to do is sufficiently discounted to turn a profit on Armageddon. There’s a Hidden Pivot support at 2894.50 that is working thus far to contain the fraudulent air pocket, but I wouldn’t lean on it too heavily._______ UPDATE (May 6, 12:15 pm.): The fraudulent air pocket seems just a tad overdone at these levels, but if it snowballs, the futures could fall all the way to 2800 to pick up ‘structural’ support from some key lows recorded there in late March. The resurgent tariff war and a shooting war between Israel and Hamas that is threatening to go out of control are providing a double whammy, but it’s impossible to estimate how much of a bounce stocks would get if there’s a cease-fire agreement overnight.
