E-Mini S&P

The futures were bound for 1329.75 at day's end, assuming the short-squeeze begun from well below these level carries into Thursday. The 1319.25 midpoint is too close to yesterday's high to be worth much for 'camouflage', but if the futures get through both of these resistances, you can safely infer that bulls will remain in charge into week's end at least. My maximum upside objective for the near term (i.e., through Friday) is 1333.25.

Yesterday's price action was filled with numerous traps for traders, even deft camouflageurs. At day's end the futures looked bound for the 1298.75 downside target shown, but I wouldn't suggest trying to bottom-fish there unless you can handle a reversal pattern on a chart of 5-minute degree or less, or a stop-loss as tight as 1.00 point on a straight bid. If at least two traders reports fills, I'll establish a tracking position for your further guidance.

Gold is getting mildly pounded early Wednesday morning while the E-Mini S&Ps are down the equivalent of about 50 Dow points. Selling appears to have dried up in the latter, implying DaBoyz are setting it up for a goosing at the bell. however, this will occur only if sunrise does not bring a new wave of selling driven by news.

The futures have rallied energetically after bottoming at exactly 1287.25, the Hidden Pivot correction target flagged here Sunday night. Now, shortly before midnight, they've stalled enroute to a minor-rally target at 1319.25.  This number can be shorted by nimble Pivoteers, but it will probably be more valuable for assessing the strength of the trend.  Notice in the chart that, on May 17, there is one external peak below the 'D' target and one just above it. An unpaused move through all three resistance points (one of them, of course, "hidden") would be warning bears to step back for the time being. Traders should note that a 'b-c' pullback from just above either of the two external peaks could yield an excellent opportunity to get long via camouflage.  Calling the turns precisely and confidently is easier than you might think.  Want to learn how? Click here and get a $50 discount to the upcoming Hidden Pivot Webinar on June 6-7.

The futures finished the week with a plunge to within 2.50 points of the 1287.25 target given here on Friday. I'll update Sunday night if they turn around, but otherwise I expect the target to be hit; and if exceeded, for yet another, a Hidden Pivot at 1257.25 associated with a larger, unorthodox pattern, to become magnetic.  Alternatively, it would take a print today at  1317.75 for bulls to regain their footing on the hourly chart (reproduced alongside to show the significance of this number).

A clear target at 1310.0 evinced no discernible support, telegraphing the weakness that was to follow and stopping us out for a loss of three ticks ($37.50) per contract. As of around 1:25 a.m. EDT, a minor ABC downtrend promised 1287.25 (5 min, A=1317.50 at 1:25 p.m. on 5/17). If that Hidden Pivot were to fail, we could be looking at a quick break to 1257.75, the target of the somewhat unorthodox pattern shown.  At this point, we are no longer looking to bottom-fish as has been out custom, but to attempt trendwise entries using camouflage.  As should be obvious to Pivoteers by now, projecting trend segments at the start of a (possible) bear market is inhibited by the relative lack so far of downtrending ABs.  Regardless, I'll suggest that you leave your mind open to the possibility that we ain't seen nuthin' yet.

There are more bottom-fishing numbers than we can use, but if I had to pick my favorite it would be 1310.00, a Hidden Pivot support inventoried here yesterday.  We can dispense with 'camouflage' on this one, simply bidding 1310.25 with a three-tick stop-loss. If the prop-desk monkeys really are monitoring these targets as Dale suggests, front-running us whenever they can, we can play it safe by canceling the trade if the futures rally more than 2.50 points from anywhere between 1310.25 and 1311.00.

Bearish targets at 1310.00 and 1301.00 remain valid, but if you're a night owl and there's an opportunity to bottom-fish the 1316.00 'D' target of the pattern shown, go for it.  Its 'p' sibling lies at 1331.50, a support whose decisive breach implies that 'D" itself is likely to be reached. You'll be on your own if the order fills, but be sure to take a partial profit if you get a rally to the 'c-d' midpoint.  A decisive breach of 1316.00 would imply still lower prices ahead.

The full extension of the pattern show puts this vehicle down as low as 1301.00 before it finds traction.  The over-the-falls 'A' yields a somewhat less bearish 1310.00, but at that point, whose counting?  I'll make the lower number my minimum downside objective nonetheless, although camouflageurs are encouraged to take a stand at the higher if you can get in with under $50 of theoretical risk per contract.  Shorting the little sonofabitch will not be easy if that is your preferred strategy, since price action over the last six days has been as herky-jerky as Bruno Hauptmann's EKG in the last moments of his life. ______ UPDATE (2:58 a.m. EDT): Shortly before 3 a.m., the little s.o.b. was in a mild short-squeeze that could yield opportunity from the long side for night owls.  A 'b-c' pullback just above from 1344.75 (2.75 points above the so-far short-squeeze high) would be the ticket. FYI, the bearish targets given above will remain valid in theory until such time as 1370.25 is exceeded to the upside.