Hidden Pivot voodoo nailed El Diablo’s most diabolical swings last week almost to-the-tick, allowing subscribers who were tuned to this vehicle to crush it on trades from either side of the market. The week ended with a key support at p=4324.25 holding precisely, so any predictions about what, exactly, will come next would be premature. As always, a decisive breach of p would portend more downside to the ‘D’ target — in this case 4062.50, the number we’ve been using to avoid getting suckered by bear rallies. Meanwhile, we should not fear the inevitable short squeeze unless it pushes this hoax above the 4512.75 ‘external’ peak recorded on February 12. ______ UPDATE (Feb 23, 6:06 p.m.): Even the village idiot could see that all rallies are short sales these days and that they are occurring mostly in the dead of night. This is when the Master of the Universe (a.k.a., DaBoyz) are most easily able to manipulate stocks higher for distribution on extremely thin, short-squeezed volume. Bears should be careful as the selloff approaches the 4190 ‘secondary’ pivot of the large, bearish pattern that projects to 4062.50. Here’s another view: the presumably fragile neckline of a big head-and-shoulders formation. _______ UPDATE (Feb 24, 11:17 p.m. ): A dead-cat trampoline bounce rocketed off a low 40 points from D=4062.50. The low occurred about midway between p2 and D, a ‘discomfort zone’ that is too unreliable to leverage. A run-up to the green line would trigger a ‘mechanical’ short, but only a one-level ride should be attempted; any more would be greedy. Here’s the chart.
