Bulls were in charge when the week ended, having clawed their way back to within an inch of new record highs. Option expirations slowed the ascent, since many traders held calls at the higher strikes that had prevailed before stocks plunged on Tuesday because of unsettling inflation news. Although the futures finished the day down 32 points, it took gumption for bulls to pull the lunatic stocks out of a nosedive that began to gain momentum just minutes into the session. Look for the rally to continue to the 5128.50 target of the pattern shown, and don’t pass up the opportunity to bottom-fish ‘mechanically’ if a correction should bring the March contract down to the green line (x=4984.50).
ESH24 – March E-Mini S&Ps (Last:5014,50)