Given the ease with which the futures sliced through the 2898.13 midpoint pivot shown, there is more selling to come. At a minimum, the presumptive correction should continue to at least p2=2834.31. The justification for bottom-fishing there is that another strong bull leg awaits. If so, p2 is a logical place for a reversal. If the December contract were to instead head down to D=2770.50 — or, heaven forbid, exceed it — that would raise the odds that the next rally will produce a very tradeable top at either p or D. ______ UPDATE (Oct 3, 8:39 p.m.): If this short-covering spree hits x=2961.64, that would trigger a mechanical short, stop 3026.00. The approximately $3200 of entry risk per contract is too steep, so we’ll look for another way in if the opportunity should arise.______ UPDATE (Weekend): This chart shows another reason to consider shorting just above with a stop-loss as tight as five ticks. It’s a cheap way to play the ‘mechanical’ set-up noted above, but I am recommending it only to those who have made at least a few bucks on the way up.
