The tightly stopped short I suggested at 6109.00 two weeks ago is holding, since the December contract has traded no higher than 6111.00. It took a nearly 60-point rally to trigger the trade, since the futures were at 6051 when I made the recommendation. Did my target catch an important top? We’ll know soon, since the subsequent selloff ended last week just shy of the 6036.50 correction target shown in the graph (see inset). If you’ve been short for the ride down, cover 50% to 75% at 6036.50 and place a stop-loss at 6085.50 for the rest. If it’s hit, that would imply new record highs are coming. Even so, let’s be alert to the possibility of a fake breakout that would trap bulls and shorts alike. Alternatively, a two-day close beneath 6036.50 would be reason to take this weakness seriously.
ESZ24 – Dec E-Mini S&Ps (Last:6051.25)
