Against a backdrop of horrendous news last week about the resurgence of Covid-19, the broad averages still managed to hold aloft, demonstrating yet again that the psychosis that has afflicted investors is worse than merely mild. The August contract looks like a better-than-even bet to reach the 3392.75 target shown in the chart. It appears to be consolidating above a midpoint Hidden Pivot at 3158, presumably for a thrust at least 3275.50, the secondary pivot. However we attempt to get on board, our trading bias should remain bullish until such time as minor abc corrections start exceeding midpoints and ‘d’ targets. I will signal in the chat room if this occurs to any significant extent. _______ UPDATE (Jul 20, 8:47 p.m. EDT): As anticipated, the futures have rallied sharply and are closing on p2=3275.00, my minimum upside target for the near term. I’ll recommend shorting there with a tight ‘rABC’ pattern to those who are familiar with the tactic. By ‘tight’, I mean risking no more than 3-4 points theoretical per contract on entry. _______ UPDATE (Jul 21, 6:48 p.m.): I am only half-kidding when I say that all trends, up or down, in all times and all vehicles, reverse at p2. This one did, just two points shy of the pivot, at the top of a 40-point rally. The short could have produced a quick profit of as much as $1500 per contract, but because no one mentioned having done the trade in the chat room, I have not established a tracking position. Now, a decisive thrust past p2 will all but clinch more upside to D=3392.75.
ESU20 – Sep E-Mini S&P (Last:3254.50)
