Trade-talk ‘optimism’ has sent index futures into their umpteenth short-covering spasm Wednesday night, putting in play the 2983.75 rally target shown. It is all but certain to be achieved, demonstrating yet again the enduring hold that tariff blather has on investors. They evidently care about little else, which is ironic, since it is highly improbable the talks will yield substantive results. I had suggested earlier that we get short on the news, but the news has dribbled out and been regurgitated perhaps a dozen times in a way that leaves the door open for yet more trade-talk blather. Tonight’s headline says merely that the talks will resume again in October. Big deal, right? Regardless, it has added tens of billions of dollars to the value of shares, providing cover for institutional holders as they to continue distributing stock to the gullible. _______ UPDATE (Sep 5, 9:23 p.m. ET): The top of Thursday’s 48-point rally slightly exceeded the 2983.75 target noted above, but the shallow pullback that has followed implies buyers are not yet finished. If they follow through on Friday, use the 3006.75 target shown in this chart as a minimum upside objective. You should also allow for a possible stall at 2998.75, the secondary pivot of a much larger pattern.
ESU19 – Sep E-Mini S&P (Last:2969.25)