Trading Plan for 11/13

If Monday’s session only delayed the pattern’s resolution… then Tuesday’s open should compensate for the delay. If trending in one direction or the other isn’t obvious at the open, then the morning might remain trapped in the range.

Pattern points… (Setups and technicals)[pay]
A chart of Monday’s price action may look volatile, out of context. Not when considered in the context of price action that preceded it. That’s not surprising, considering the lower participation on Veteran’s Day with the bond markets closed.

Not that the session ever stood still. Wide swings “trended” up from the overnight dip to 1372.50 back up to 1381.50, then back down intraday and back up again. It is not coincidental that the action resembles a wild bronco bucking in its stall at a rodeo. And the rider is about to jump on.

Monday’s price action was not any more predictive going forward. Unfinished business was left below at the morning’s 1372.00 bias-down signal, but it is already encompassed by Friday morning’s 1363.50 “new Globex trend extreme.”

If anything, it was optimism that prevented testing 1372.00, perhaps the same “ineffectual optimism” that prevented recovering back above 1378.00. Just more evidence that buyers are weak-handed.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Regardless of which direction Monday’s pattern were to resolve, Tuesday’s open should try to trend forcibly if the morning were going to resolve it either way.[/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.