Trading Plan for 1/12

If Friday”s drop can”t attract new sponsorship Monday… then there isn”t much that can attract sellers, or not many sellers to be attracted. And if Friday”s drop was no more than a temporary correction, then new highs wouldn”t take much longer.

Pattern points… (Setups and technicals)
Thursday”s close was above the 2052.00 corrective bounce limit. However, the close was still within a pattern of which 2052.00 was a critical element. And room for noise intraday at 2055.50 and 2058.25 were tested but not recovered through the close. Friday was greeted with the door open to the corrective bounce having ended.

Friday morning”s steep, deep slide might seem to confirm that the direction is reversing down. Especially since that followed rejecting the open”s gap up to 2061.00. And especially since the reversal was so aggressive and the slide was so substantial, down to 2031.00.

But the drop was also limited in duration. It was contained entirely within the morning”s bias environment. The 2045.00 bias-down signal wasn”t even broken until after triggering no-bias, which the afternoon retraced entirely.

So long as last week”s corrective rally may have ended and reversed down, a deeper dip to 2029.00 is likely, and likely not to hold. Otherwise, immediately recovering at least 2052.00 would help to put new highs into play. Especially Friday”s interim dip was steep and deep.

What”s Next… (Outlook and opportunities)
It”s been three weeks since our last Saturday Review, so be sure it”s on your calendar for this weekend, at 9:30am ET. I”ll send out a remind in the morning, with this link.