The E-Mini Nasdaq returned to normal on Friday — i.e., heedlessly over-revved — by impaling a daunting-looking midpoint Hidden Pivot at 11669 (see inset) and then closing comfortably above it. If Monday produces more of the same, the futures will not only become an an odds-on bet to reach the 12,142 target of the pattern shown, it will also shorten the odds of an eventual rendezvous with the 12,808 target of a much large pattern shown here. There is a 12,271 ‘secondary’ pivot associated with this pattern that you should also jot down, and also a midpoint pivot at 11,734 that is almost exactly where the action came to rest. The latter has the potential to stop the rally cold, so we should pay heed. I have labeled it ‘an interesting place for a pause’ because it is.
NQZ20 – Dec E-Mini Nasdaq (Last:11,727)