A potentially important rally target at 3069.75 broached here earlier still looms. However, there is another of even larger degree at 3075.75 (see inset) that has come into focus and which needs to be taken into account. Together these two Hidden Pivots would apppear to pose such daunting resistance as to make an easy move past them improbable. Thus, with a potentially tradeable top slightly above, I’ll recommend taking a speculative short position using any means that suits your style. Stay tuned to the trading room for more-detailed guidance, since opportunities to get aboard using put options in SPY or DIA could develop intraday. The latter has rally targets at 274.14/274.44, 276.90 and 280.88, but only the last corresponds to the pattern used to project 3075.75. Recall that we have a corresponding target in AAPL at 283.97 that can be used to bet speculatively on an important market top. _______ UPDATE (Nov 4, 5:26 a.m. EST): The glue-sniffers are running the show, having wafted the futures decisively past 3075.75 in pre-dawn trading. We’ll stay out of their way for now, but if you’ve held a position on the way up, you should be out of 3/4 of it by now. _______ UPDATE (Nov 4, 4:53 p.m.): Buyers didn’t exactly shred the 3075.75 resistance, but they did exceed it by a not inconsequential eight points, and the pullback so far has been shallow. Bulls deserve the benefit of the doubt for now, but let’s see how they do on ‘turnaround Tuesday’ before we resort to wishing them ill.
ESZ19 – December E-Mini S&P (Last:3076.50)