Bears turned toothless on Friday, but neither that nor a voodoo forecast in the chat room of a big rally could overcome the crushing weight of the pattern shown. It projects a further fall of 180 points, to 3502.50, before this minor phase of the bear market begun on January 4 has run its course. Bulls might be tempted to imagine the worst is over if the big rally actually occurs and reaches the green line (4029), but that would merely trigger an appealing ‘mechanical’ short predicated on a relapse to 3502. That target still looks very likely to be achieved, given the way sellers vaporized the 3853 midpoint Hidden Pivot support the first time they encountered it on the way down, on June 14.
ESU22 – Sep E-Mini S&P (Last:3675)