Bears’ Last Chance to Take a Shot?

by Rick Ackerman

Bears eager to get short near the top of the stock market’s inexplicable rampage could have just one chance left before shares blast off for infinity and beyond. This is the clear implication of the chart included with my latest forecast for the Nasdaq 100 (see below). Last Thursday, the E-Mini Nasdaq futures peaked almost precisely at a long-term Hidden Pivot resistance located in a place that has been known to show magical stopping power. The futures sold off nearly 400 points after touching it, but they recouped more than half of it Wednesday, showing no sign of fatigue at the bell. The 9604 high last week could conceivably mark the end of the vertical rally since March 23. However, if the June contract closes above the 9585 pivot for two consecutive bars on the weekly chart, that would make a run-up to 10,571 an odds-on bet. That is a little more than 9% above the all-time high at 9763 recorded in February, and it would make this spring’s sensational running of the bulls even more inexplicable.

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