I’d expected stocks to fall even harder than they did on Friday, especially in the final hour, but DaBoyz did a terrific job keeping the market afloat after around 11 a.m. Prices chopped their way moderately lower thereafter, allowing the smart guys to distribute stock on a day when the Dow was down more than 700 points. That was quite a trick, actually. Weakness is all but certain to continue Sunday night, but on DaSleazeballs’ terms. That implies they will pull their bids and let index futures plummet on zero volume. By Monday’s opening bell, with sellers exhausted, it will be relatively easy to touch off a short-covering panic. That’s about as much as I can predict with good confidence at the moment, but we can use the Hidden Pivot levels shown in the chart to exploit swings in either direction. For starters, look for the Sunday night selloff to hit p2=2941.00, a potentially opportune spot for bottom-fishing with an ‘rABC’ set-up. ______ UPDATE (Jun 29, 950 p.m.): Price action is about as wishy-washy as it gets, although it still smells like distribution. _______ UPDATE (Jul 1: 12:02 p.m.): A subscriber asked in the chat room whether shorting ‘mechanically’ at x=3084.50 was recommended. I replied that I’d rate the mechanical short as VERY appealing at a gut level, but very dangerous technically. _______ UPDATE (Jul 1, 9:28 p.m.): Use this pattern to trade the September contract as it works its way up to the 3175.00 target. The stall precisely at p=3119.00 could mark an important top, but I doubt it. In fact, this evening’s pullback to x=3090.94 is an appealing mechanical ‘buy’, stop 3062.50. Similarly, a pullback from 3147.31 to p would offer an excellent opportunity to board the uptrend belatedly.
ESU20 – Sep E-Mini S&P (Last:3101.75)