Trading Plan for 10/20

If the new Ebola Czar has no medical background… then he won”t have to spend much time focusing on that aspect of the crisis. Does he have a military background? No? Great! He can be the Isis Czar, too!

Pattern points… (Setups and technicals)
Friday”s session remained in positive territory throughout the day. In that regard, the “session-long rally” setup succeeded. But its actual requirement is that each timing window probe the prior timing window”s high, with only one exception. Friday had two exceptions, the noon hour and the afternoon bias environment.

The bearish WedEX certainly took control by noon Friday. Rallying to 1891.75 began a reversal into noon that extended down to 1870.25 at the bias-environment”s low. Bouncing tested the afternoon drop”s 61.8% retracement, closing at or under its 38.2% retracement. Buyers gained no traction for the effort, so the bounce was absorbed. Also a success.

So, two contradictory signals found a way to co-exist. It”s not exactly harmony, but it”s also not over. Whether Monday opens flat, or if it were to gap up or down, the bearish WedEX should trigger a morning-long downtrend.

What”s Next… (Outlook and opportunities)
Here”s the link for to weekend”s Saturday Review, which begins at 9:30 ET. There is no transcript this weekend, so I hope to see you there!