Another angst-filled week for bears brought the futures to within easy distance of the 4023.25 rally target we’ve been using. Mid-February’s 3959.25 peak survived the bullish onslaught intact, and buyers didn’t show much energy in taking four days to vault midpoint resistance at 3872. Still, it’s hard to imagine the target remaining unachieved for more than three days. When it happens and the futures poke decisively past it, we’ll shift our sights to the 4083.75 target shown in this chart. It uses the next-lower low as a point ‘A’. A pullback to the green line (3811.25) would trigger a ‘mechanical buy, but only if the future have gone no higher than 3965 first. Corresponding targets for the June contract lie respectively at 4010.25 and 4070.75, and a drop to 3800.50 would triggering the buy, stop 3709. ______ UPDATE (Mar 18, 5:44 p.m.): Bulls got clobbered after a rally attempt sputtered out shortly after noon. We haven’t seen anything remotely resembling fear since March, but if the tempo of today’s selling picks up ahead of the weekend, there might be at least a little nervousness at the closing bell.
ESH21 – March E-Mini S&Ps (Last:3921.50)