Trading Plan for 11/18

[pay]Pattern notes.
Tuesday’s session was never bearish. Long-entries were repeatedly identified, and a couple were triggered. None was very productive before reversing down- each peaked somewhere in the the 1105.00-1107.00 equlibrium zone – but the session was never bearish.

1105.00-1107.00 was probed briefly by the mid-afternoon high, and then by the last half-hour’s slightly higher high. But the earlier intraday action and overnight action already qualified the session as being “ineffectual pessimism.” Sellers tried repeatedly to gain traction, convincing to the point just short of being productive. The open gapped down, Monday afternoon’s low was probed, and (except for the afternoon’s two probes) the entire session developed in negative territory.

The last half-hour firmed up to new session highs. This underscored that the pessimism was ineffectual, but it also released some of the pent-up buying pressure. It’s net bullish, since the close did hold above the 1105.00-1107.00 equlibrium zone.

To refresh: 1105.00-1107.00 was the rally’s next target, and it contained Monday’s close. This creates equlibrium, which typically tries to trend away both directions, retracing entirely at least the first two times. Tuesday’s trending attempt was down, and it was retraced, so a rally is likely. Equilibrium isn’t enough reason for durable trending to begin, either up or down, but it is a useful guide to what the likely path is from here.

Indicators and Internals.
3-minute RSIs weren’t overbought or oversold at all intraday Tuesday. Not that 1-minute RSI set a great example, becoming extended only barely, and barely three times.

Wednesday’s opportunities.
A gap up Wednesday is likely, but not required. I will be monitoring overnight action for a long-entry opportunity. Pre-open econ reports are all but assured to stir things up for being high-profile.[/pay]