Index futures have opened Sunday night with subdued selling that has yet to test Friday’s lows. This suggests there are more bargain hunters around at the moment than panic-stricken sellers. However, DaBoyz are surely distributing as much stock as they can in order to handle the onslaught of market-order ‘sells’ that are likely to materialize at the opening. As always, a decisive breach of the midpoint pivot, where selling has currently stalled, will imply more downside over the near term to at least D=3189.50. Any bounce from near that number should be regarded as a possible ‘counterintuitive’ buying opportunity. _______ UPDATE (Jan 6, 10:19 p.m. EST): Short-covering intensified as the day wore on and was continuing into the night session. The point ‘A’ low of the pattern shown is weak, but it’s all we’ve got right now to project a target at 3310.50. Let’s see first how buyers do at the midpoint resistance, p=3258.63, my minimum upside projection for the near term, before we try to judge how likely 3310.50 is to be achieved, and how soon.
ESH20 – March E-Mini S&P (Last:3248.75)