Today’s fist-pump through a clear midpoint resistance at 3291.00 implies the rally will continue at least to the pattern’s D target at 3369.25. Your trading bias should be bullish in the meantime, although rABC entry set-ups may be difficult to come by if the trend goes uncorrected on the lesser charts as it did today. Since all vehicles seem to be pulling back from p2 these days, you can use the one at 3330.13 to get short, albeit probably not for long. Alternatively, a pullback to x=3251.88 would trigger a mechanical buy signal, stop 3212.50. The 39-point entry risk cries out for an entry set-up using a pattern of much smaller degree. Ask in the Trading Room for guidance if the opportunity gels. _______ UPDATE (Feb 5, 9:09 p.m. EST): Here’s a chart with a lesser target at 3352.00 that has been slow in coming. The one at 3369.25 remains viable regardless. _______ UPDATE (Feb 8, 12:25 p.m.): I’ve hung out the yellow flag, since the futures should not have died last week a pathetic couple of inches from the 3369.25 target. The bullish argument would hold that they are simply consolidating for a thrust that will turn the target into suet. If that proves to be the case, we’ll have opportunities to buy ahead of the move and to limit risk to bupkus. For now, though, let’s hang back. I’ve recommended a short in SPX (instructions will appear in the touts list Sunday evening), but the index would have to fall 129 points to trigger it. _______ UPDATE (Feb 10, 9:04 p.m.): The futures were lunaticking higher Monday night, inexorably bound for the 3369.25 target flagged above. It’s clarity is adamantine, suggesting it will repel the charge as though it were granite, but who knows? The futures will probably hit the target in the dead of night, as they so often do, but if you’re awake at the time, I’ll suggest shorting there with an rABC set-up or the tightest stop-loss you can handle.
