The two-day rally that ended the holiday-shortened week was a stage-managed fake and destined to fail, based on how easily sellers crushed the midpoint Hidden Pivot support (p) at 402.80 on the way down. That clearly implied that D=339.27 eventually will be achieved and that the rally can be shorted. But where? My hunch is that a ‘mechanical’ entry using p will work. It would take a stop-loss at 423.98 to keep risk and reward in balance with 339.27 as the objective. Since that would risk $1050 per contract initially, the trade is recommended only to those who know how to cut that down by as much as 95% with a ‘camouflage’ entry set-up.
MSFT – Microsoft (Last:390.49)