The futures tripped a ‘mechanical’ buy signal when they sold off Friday afternoon, but they subsequently failed to get airborne. The yellow flag will be out Sunday night because of this, even though the buy signal remains theoretically in effect. A bigger picture shows that last week’s modest gains fell slightly shy of record highs. Stocks are in dangerous territory, with traders undoubtedly sharply divided over what is likely to happen next. We needn’t share their anxiety, however, as long as we reckon the odds based, simply, on impulse legs in various time frames. Stay close to the Trading Room for timely guidance. _______ UPDATE (Sep 23, 6:01 p.m.): The 3042.25 rally target given here earlier remains viable, having survived Monday’s swoon toward the pattern’s point ‘C’ low by 1.50 points. Use p=3011.50 as a minimum upside objective for now. An easy push past it would shorten the odds of a follow-through to 3042.25.
ESZ19 – December E-Mini S&P (Last:3002.00)