The irresistible power of the stock market’s melt-up is on display in the fleeting B-C pullback shown in the chart (see inset). That’s all it took to recharge this vehicle for an impending, 121-point surge to the 6429.00 ‘D’ target. There can be little doubt the futures will get there, given the ease with which they penetrated the 6306.13 midpoint resistance last Wednesday and then closed above it. There are two compelling trades left in the pattern: a mechanical ‘buy’ at x=6244.50 if the futures should pull back sharply, and a tightly stopped short at D=6429.00 if you’ve profited on the way up. ________ UPDATE (Jul 7, 2:53 p.m. EDT): Today’s plunge brought the futures down to within less than two points of x=6244.50, where I had suggested a ‘mechanical’ buy. If you got aboard near the low, I’d recommend taking a partial profit on the 21-point bounce that has occurred so far.
ESU25 – Sep E-Mini S&Ps (Last:6264.50)
