The bullish pattern shown in the chart is so clear and compelling that even a relatively small thrust above it such has occurred would imply that new record highs are coming. This would hold true even if the futures take out the 10358 low recorded last Tuesday. In fact, it would require a plunge all the way down to 9728 to generate an impulse leg strong enough to turn the daily chart bearish. We should keep an open mind in any case, but we’ll look for ways to go bottom-fishing next week if the futures gift us with weakness. Alternatively, if there is strength we’ll look to get short, since I strongly doubt the futures are ready for a sustained rally. _____ UPDATE (Jul 20, 9:19 p.m. EDT): The 11688 target shown in this chart seems very ambitious, but given the rabid obsession with supposedly pandemic-proof tech stocks, we shouldn’t be surprised if it’s achieved by week’s end. The pattern looks like a good bet to work for ‘mechanical’ setups, but I doubt we’ll be gifted with the kind of pullback it would require to trigger us in. Accordingly, we’ll look for smaller stuff on the way up, catch-as-catch can. _______ UPDATE (Jul 21, 6:54 pm.) Bulls chickened out three ticks shy of a new record high, then acquiesced in a nearly 300-point pullback. This is odd behavior for this vehicle, which is so hopped up on meth that nothing should stop it. Let’s see what TSLA earnings due out Wednesday bring.
NQU20 – Sep E-Mini Nasdaq (Last:10877)