ESZ20 – December E-Mini S&P (Last:3343.50)

The corrective pattern furnished here Thursday night is still on-track to fall to its D target, which for the December contract is 3233.00, nine points lower. Friday’s fake overnight waft narrowly missed triggering a juicy short when it failed by a few points to reach the  green line. Now, although a run-up to the line would trigger a second signal, I am not recommending the trade unless you know how to cut the risk with an rABC set-up.  Bottom-fishing at p2=3278.25 with a tight stop-loss or ‘counterintuitive’ set-up will be simpler, as will similar tactics at D=3233.00.  A decisive overshoot of D would be bearish. _______ UPDATE (Sep 15, 4:38 p.m. ET): The trade came within an inch of getting stopped out, but I am still in love with the pattern, although no longer the odds.  An old Hidden Pivot rule says that if a beautiful set-up doesn’t work, do the opposite. In this case, however, I am not recommending trading with a bullish bias because I don’t trust the rally. Move to the sidelines for now. Here’s the chart. _______ UPDATE (Sep 16, 5:04 p.m.): This is exactly what I was talking about when I said Mr. Market was doing his utmost to keep bears from getting short. This kind of price action is damned near impossible to short, at least with entry risk under tight control. _______ UPDATE (Sep 17, 10:33 p.m.): Call me a masochist, but I’m still in love with the pattern shown. It’s stopped out bears no fewer than twice this week, and the D target at 3238.50 is slightly higher than the original, but that’s where the futures are headed — for sure! — even if they get there without any of us patient, cautious, super-smart bears aboard.