The bounce begun last week from 4963 promises to set up the juiciest shorting opportunity we’ve seen in this vehicle since last July. The rally has come almost precisely from the sweet spot of the rABC pattern shown, implying that if it touches the green line, a ‘mechanical’ short from there has a better chance of achieving D=4777.50 than getting stopped out above C=5333.50. The pattern has been useful so far, having correctly signaled the drop that occurred after a theoretical ‘conventional’ short was triggered on the initial fall through the green line. The new trade is recommended only to subscribers who are comfortable with ‘camouflage’ triggers that can cut the entry risk by as much as 95%. In this case, the implied 139-point stop loss carries theoretical risk of nearly $7,000 per contract.
ESM24 – June E-Mini S&Ps (Last:5131.50)