Trading Plan for 10/28

If Monday”s open had gapped up… then Friday”s lack of traction could have been rendered irrelevant, and the session could have rallied. Now Monday”s buyers have failed to gain traction too — the bias environment exit and final hour entry were within the noon hour”s range, again.

Pattern points… (Setups and technicals)
So, like Monday”s open, rallying immediately will be the only immediate path higher Tuesday. Probing fresh highs in any other way would be likely to reverse back down into the range.

We have reason to expect fresh highs, since Monday afternoon”s 1960.25 bias-up target was left outstanding and not invalidated. Monday”s post-open action formed an Ascending Triangle in negative territory, which is also “ineffectual pessimism.” 

Gapping up would all but ensure the target will be fulfilled, and also allow durable buying pressure to extend higher. Extending intraday to 1984.00 would not be surprising at this stage. But testing 1960.25 without gapping up would be likelier to reverse back down intraday.

What”s Next… (Outlook and opportunities)
Not gapping up wouldn”t ensure probing fresh highs even temporarily. But only gapping down or immediately sliding through Monday morning”s 1944.50 low would extend the defensive posture, presumably to test 1927.25-1931.00 before resuming the rally.