A Small Glimmer of Hope...for Bears!

Ordinarily I wouldn’t make too much of the E-Mini’s failure on Tuesday to reach the 2816.50 target shown, but it’s worth mentioning for two reasons. For one, the pattern that produced the target is so clear and compelling that even a shortfall of two or three ticks should be taken as a warning sign.  And for two, I’ve gotten so accustomed to predicting higher and higher prices for this vehicle over the years that I am being extra careful about getting sandbagged when the broad averages finally do head sharply lower for more than the usual day or two. I am not predicting that this about to happen, but we’ll at least give bears the benefit of the doubt for the moment. To be specific, I’ll note that a further decline touching 2720.00 would make the June contract No worse than an even-odds bet to continue down to at least 2632.75.