The futures spent most of the week moving higher, but the rally ultimately failed to negate the bearish pattern shown. This means the Mini-Naz was a decent short on Tuesday at x=11,143, since the 10,445 downside target has yet to be achieved. Would we have stayed short ahead of the weekend? Given the news concerning President Trump, it was probably a decent bet. However, we never presume to know how the thieves and bozos who dominate Sunday night’s price action will behave, so we never feel guilty going home on Friday without a position. Nevertheless, I’ve suggested bottom-fishing midpoint pivots in ES and DIA that correspond to the one at 11,090 shown here. You should attempt this only if you know how to set up an rABC trigger at the red line that would risk $150 or less initially. _______ UPDATE (Oct 5, 5:48 p.m.): The intraday low never got down into our buying range near 11,090, but the rally will need to pick up tempo to persuade that bulls are back in charge. If so, they’ll announce it with a pop to at least 11,623, the ‘D’ target of this minor pattern. If you’ve caught a profitable ride higher, you can try shorting there with a stop-loss tightened with a small rABC. _______ UPDATE (Oct 6, 8:49 p.m.): Far from popping its cork, the E-Mini Nasdaq turned leaden, plunging beneath the ‘C’ low of the minor bullish pattern we used to project 11,623. That would have stopped out enough bulls to induce a snap-back rally, but so far one has not occurred, and that’s bearish.
