I’ve shown you today’s chart before (see inset), and some of you may remember it because it is more than a little threatening. But with the Indoos just a hair from reaching the potentially very important rally target featured in the chart, a timely reminder seemed appropriate. The target is a clear and compelling Hidden pivot resistance at 27251 that lies exactly 299 points above the 26,952 record high achieved a week ago. The high missed our benchmark by just 1%, and while that may not sound like much, I would expect the Dow to get even closer to it before any serious downturn could begin.

Not to psychoanalyze the chart too deeply, but the Dow appears to have blasted off recently without building a sufficient base for a push to 30,000 or higher. I’m not ruling out such a move eventually, but it would be more easily accomplished if a hellish dive were to occur first, scaring the bejeezus out of bulls. A head-fake to 27251 would set up this kill shot nicely, since the Dow would be high enough above the old peak to turn traders and investors even giddier than usual. It is of course possible that some are already giddy enough for DaBoyz to pull the plug, since the Dow technically broke out when it exceeded 26,952. Traders interested in leveraging a possible sharp reversal from 27,251 with entry risk tightly controlled should stay tuned, especially to the chat room, for guidance in real time.