Trading Plan for 10/20

Happy Anniversary, got you back on my mind… The 24-year anniversary of 1987’s so-called “Black Monday” was anything but. It was not a crash, nor was it black. It wasn’t even a Monday. Perhaps the afternoon’s steep, relentless slide was an homage, reliving some of the original excitement on a much smaller scale. If not, then it might be the beginning of another crash-like sequence.

Pattern points… (Setups and technicals)[pay]
Despite being probed as resistance, 1221.25 was not recovered through any relevant timing window Wednesday. Friday’s close was still in the process of testing it, as was Tuesday’s close (it was never touched Monday).

1221.25-1222.00 was the next higher objective  put into play upon recovering 1182.25 for two consecutive sessions. Now has 1221.25 has held as resistance for two consecutive sessions.

Wednesday’s Expiration Indicator suggests a downward bias into and out of the weekend. This does not prevent intraday rally efforts — even to test 1230.00. A close above 1221.25 would be unlikely.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Having closed Wednesday under both 1221.25 and 1215.00, immediately recovering 1221.25 at Thursday’s open could reject Wednesday’s signal. There is plenty of news among econ reports and earnings to try to make it happen.[/pay]

Look for at least one update overnight or ahead of the Morning Market Tour… My thoughts on the day’s econ calendar are linked here.