Friday’s agitated price action was telegraphed at 3:00 a.m. overnight, when the futures meandered aimlessly below a clear Hidden Pivot support at around 3:00 a.m. This somewhat altered our immediate outlook without significantly affecting its bullishness. Keep the aging, 3153.25 target in the back of your mind as the futures work their way higher, but use the 2984.50 midpoint resistance of the pattern shown as a minimum upside objective for the near term. It will be an enticing spot to squeeze off a short, but not unless you’ve made at few bucks on the way to it. A drop of as much as 50 points on Monday would change nothing. _______ UPDATE (May 26, 7:53 a.m.): It took the swarm of locusts 18 hours to munch through 2984.50; now the immediate objective is 3024.88 (see inset), and thence the pattern’s D target, 3065.25. _______ UPDATE (8:59 p.m.): A meaningless selloff late in the day triggered a ‘mechanical’ buy signal at p=2984.50, stop 2957.50, but I didn’t recommend the trade because of its poor timing — i.e., at the closing bell. We’ll take another look if the futures come down to x=2944.13, the green line.
ESM20 – June E-Mini S&Ps (Last:2994.00)
