ESZ23 – Dec E-Mini S&Ps (Last:4600.75)

The S&Ps will be trading above 5000 if MSFT rallies the 15% needed to achieve the 430 target I’ve ballyhooed in this week’s commentary. Even so, I doubt the E-Minis are about to blow through the ‘discomfort zone’ just above, since it is fraught with prior peaks and voodoo numbers. Accordingly, I’ve sketched a bearish reverse pattern that would trigger a short if the futures were to fall 75 points from any high. That’s an unacceptably large trigger interval, but you can cut it down to size by setting up a ‘camouflage’ trade on a chart of lesser degree, such as the 15-minute.