E-Mini S&P

Gold was moving higher, although not so energetically that we might have expected a 1771.50 target to be reached. Even so, there were enough technical reasons to support a bullish outlook for the near term, and we examined them in detail during this session. We also lingered on the lesser charts of the E-Mini S&Ps, concluding – correctly, as it turned out -- that the ferocious rally begun at the opening bell was nearly spent.

Bears are given the edge in Wednesday's tout for the E-Mini S&P, and if they prevail it could spell a 200-point fall for the Dow Industrials. Even so, I've highlighted a minor midpoint support that could be used by night owls to speculate against this picture of weakness.

Bears have the edge right now in a duel of impulse legs that project, respectively, to either 1283.75 (p=1300.50) if lower; or to 1323.75 (p=1313.00) if higher. A rally exceeding 1313.00 overnight would give bulls a fighting chance, but regardless, he best spot for night owls to attempt bottom-fishing would be at the 1303.25 midpoint support of the pattern shown. A stop-loss as tight as two ticks (!) could be used for this gambit. Want to learn how to find these entry spots yourself?  Click here for information about the upcoming Hidden Pivot Webinar.

The unexciting rally off this morning's low looks bound for an unexciting target at 1314.25, a Hidden Pivot.  It's not bullishly tradable, at least not easily, but bored night owls could consider shorting a downtrending abc from that number if a suitable pattern turns up on the one-minute chart.  The bigger picture remains bullish, but the first opportunity I could see to trade it would require a B-C pullback from between the two labeled peaks.  Moreover, the approach would need to be choppy in order to mask any perceptions of strength that will have accrued up to that point.

Stocks and bullion have noticeably decoupled recently, but only mildly, and the effect so far is not strong enough to allow them to go their separate ways. Gold was up moderately early Sunday evening, but with DaBoyz manipulating index futures lower -- now by nearly 8 points in the E-Mini S&Ps -- gold and silver have given up their modest gains and are trading nearly unchanged.

Sunday night's presumably stage-managed weakness has bounced precisely from the minor Hidden Pivot support at 1305.00 shown in the chart. Any lower, however, and some real selling could hit, sending the futures down to at least 1298.75 (see inset) overnight. You can bottom-fish there with a stop-loss as tight as 1.00-point, but the preferred way to enter would be via a 'camouflaged' abc uptrend from the target, using the very lesser (i.e., one-  or three-minute bar) charts.  Alternatively, bulls would regain control with a print exceeding 1320.25.  Check out the 5-minute chart to see why that could conceivably set up an opportune 'camo' buy signal.  Want to learn how to find these entry spots yourself?  Click here for information about the upcoming Hidden Pivot Webinar.

Poring over the charts of bullion and the E-Mini S&Ps, we stalked a few trades but found no promising camouflage triggers to exploit. We also took a close look at Apple’s (AAPL) charts, finding things to like, although perhaps no longer to love; and at the charts of Research In Motion (RIMM), which could fall to as low as 5.67 from a current price of about 16.

October's 220-point impulsive rally has been driving this vehicle ever since, presumably toward a 1362.25 target that looks no less compelling after a day of weakness such as we saw yesterday. Still, because we wouldn't want to miss out on the Short of the Year just because the E-Mini S&P didn't quite reach our target, we'll keep a close eye on all abc retracements, especially near their 'p' midpoints.  The nearest lies at 1311.25 and can be seen in the accompanying chart. If the downtrend overshoots it, that would be a mildly cautionary sign for bulls.

Several of today's touts are tradable, and the very bullish target for the E-Mini S&Ps corroborates a 13085 Dow target first broached a while back.