Hard selling on Friday generated a bearish impulse leg on the hourly chart while also breaching a clear Hidden Pivot support at 4147.50 shown in the chart. This means that still lower prices are all but certain; however, bears shouldn’t get their hopes too high. I say this because although the S&Ps, the Dow and the Russell 2000 got pounded last week, the chimpanzees who “manage” your money were applying a light touch to their flavor-of-the-month favorite, the Nasdaq 100. The implication is that any weakness we saw last week was tightly scripted, and that the chimps are simply rotating money so that it can hold stocks aloft more efficiently. Concerning the E-Mini S&Ps, look for a turn near 4100, or if not there, then around 4032. A ‘reverse ABC’ set-up on the 60-minute chart can be used to bottom fish, using a=4185.50 (6/17 at 1:00 p.m.) to anchor the pattern). If you’re uncertain about how to do this, wait for a simpler trade to come along that you understand. The short in this vehicle suggested by ‘Farmer’ in the Trading Room last Thursday night is a good example. It was simple to execute (if not without risk) and is currently showing a profit of around $14,000 on four lots for anyone who followed him in and stuck with the position. _______ UPDATE (Jun 21, 10:38 a.m. ET): A murderous short squeeze has turned the futures violently upward from 4126, well above my set-up level for bottom-fishing. The closest obstacle is p=4218.25 of the pattern shown in the chart. It can serve for now as a minimum upside objective. _______ UPDATE (Jun 21, 9:40): The hysteria has hit 4221.50. No subscriber reported holding a position, so I have not provided tracking guidance. However, and for what it’s worth, Farmer reports that he is sitting tight and expects a secondary top no higher than 4222.xx.
ESU21 – Sep E-Mini S&P (Last:4216.25)