Trading Plan for 11/18

If Friday’s session wanted to decline… then it had every opportunity during the morning’s sideways ranging. But it held support, and created an attraction above to inhibit selling pressure. It didn’t trend up too much more until very late.

Pattern points… (Setups and technicals)[pay]
Friday’s new high close is a new high close for the trend, above all prior intraday highs. New trend high closes on expiration aren’t usually associated with THE trend high. That is equally true for new trend high closes on Fridays. At least one more higher close is likely.

That is useless information if Monday doesn’t reverse down. But reversing down immediately would leave outstanding that “unfinished business above.” A recovery might be delayed, but we would be confident in its eventuality.

As for the potential to reverse down immediately… Friday’s 1794.00 objective was probed twice, and both probes were retraced. The objective’s buying pressure is satisfied, and RSIs diverged negatively into its retest.

Meanwhile, Friday’s opening 15 minutes of volatility having trended down is nagging. Perhaps its effect was limited to constraining the morning’s rally effort. It might also have a delayed effect on reversing momentum down Monday from Friday’s 1794.00 test, unless fresh highs probe 1799.50 without reacting down abruptly.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Join us tomorrow for the Saturday Strategy Session. Its link can be found in the blog’s sidebar. We’ll review the bigger picture, and analyze any stock requests from you and other subscribers.[/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.