The futures were saved by the bell on Friday after a deftly faked show of strength in the first two hours succumbed to gravity as the afternoon progressed. After being up more than 30 points, the December contract finished the week down nine points, just off the intraday low. There was discernible anxiety as the reversal unfolded, but no real urgency until the final 3o minutes. Fear is bound to carry over into Sunday evening, so look for a further fall to at least 4321.75, the Hidden Pivot target of the bearish pattern shown. Bottom-fishing when the futures get within a point of that number would require a trigger interval (TI) of 18 points, so the trade is recommended only for those of you who can pare that down to 6 points or less using a ‘camouflage’ set-up or your own trick. As always, an easy breach of so compelling a support would portend still lower prices to come. _______ UPDATE (Sep 26, 6:45): The futures caught a 15-point bounce from 4321.75 that last for two hours before succumbing to gravity. I am now focused on a 4220.49 downside target for the S&P 500 cash index that lies 53 points below. See my chat room post for further details. Here’s the chart.
ESZ23 – Dec E-Mini S&Ps (Last:4273.53)