ESH21 – March E-Mini S&Ps (Last:3687.75)

I’ve selected the simplest rally pattern that meets out rules in order to come up with a 3767.25 target. Although there is no reason to doubt it will be reached, we shouldn’t presume to know whether it will be impaled. Although that would indicate significantly higher prices to come, it shouldn’t inhibit us from laying out speculative shorts at the target. There is one other, lesser Hidden Pivot resistance that you should be aware of: 3744.00. The provenance of this ‘D’ target is shown in this chart. It looks like a high-odds spot to try shorting with a stop-loss as tight as you can abide. _______ UPDATE (Dec 21, 6:17 p.m.):  The 3767.25 target is still viable as a minimum upside projection, and it would be a gift if we get an opportunity to lay out shorts up there. You can use a 3796.82 target in the cash index if you’d prefer to buy put options. Far-out-of-the-moneys expiring in mid-to-late February are suggested, with a $4 limit on vertical spreads.