The futures have spent the last two weeks consolidating for a relatively modest push to the 3392.75 target shown. It’s an oldie, and although it is all but guaranteed to be reached, it could conceivably mark an important top. We’ll look to get short there regardless, using tight safeguards to avoid getting pulped if buyers simply forge higher. We would be no less eager to get short in new record territory, however, since the giddiness we might expect at those levels would be more conducive to a bull-trap high than any Hidden Pivot targets I could offer you. Stay close to the chat room if you want to avoid getting fooled. For the record, a pullback to the red line would trip an enticing ‘mechanical’ buy, stop 3080.00. If it triggers, you can paper-trade this one to enhance your understanding of ‘mechanical’ trades. Of the last dozen proffered here, only one that I can recall got stopped out for a loss. _______ UPDATE (Aug 3, 5:38 p.m. ET): Barring a collision between Earth and an asteroid, the futures will ascend to exactly 3357.00 and reverse tradeably from that Hidden Pivot over the next day or two. This pattern is gnarly perfection, and it can serve to get long ‘mechanically’ on any pullback from a Hidden Pivot level to the one beneath it (as occurred on Friday). The stop-loss would be a third of the differential between the entry price and D=3357.00. The 3392.75 target of a larger pattern remains valid as noted above, but this newer pattern can help us cut entry risk down to size on the way to it. _______ UPDATE (Aug 4, 6:42 p.m.): Remember, the futures must pull back by one full Hidden Pivot level to generate a ‘mechanical’ buy signal. The next would occur at 3274.25, stop 3246.50, but it will require a print first up at p2=3315.63.
ESU20 – Sep E-Mini S&P (Last:3299.00)