Trading Plan for 10/15

If “fool me twice, shame on ME”… then who”s to blame Tuesday? Third consecutive morning-long rally fails to avoid afternoon slide to fresh session lows.

Pattern points… (Setups and technicals)
There were more similarities between Friday and Monday than between them and Tuesday. Tuesday”s reversal down was better developed by the bias environment exit. Tuesday”s drop barely probed under the morning”s low, and only attacked the overnight low. Tuesday”s close firmed.

But nothing about any of the sessions is supportive of a bottom forming. And three consecutive failed morning rallies is “hope springing eternal,” also known as an accident waiting to happen.

Capitulating at Wednesday”s open — if not already overnight — could clear out sellers so that an actual bounce might be launched, That window is running out of time, with expiration”s influence looming.

What”s Next… (Outlook and opportunities)
Wednesday”s close may trigger the WedEX signal, which forecasts bias into and out of the expiration weekend. The setup has several bells and whistles and plenty of moving parts. But generally at this stage of the pattern, a bullish signal would require closing above Tuesday”s high. Bearish mostly just needs to close negative on the day.