Trading Plan for 11/20

If Tuesday”s unconfirmed breakout isn”t resumed on Thursday… then it could be quite awhile before another rally attempt develops.

Pattern points… (Setups and technicals)
Tuesday”s breakout was not confirmed. It was the first trending away from the ongoing consolidation range, but Wednesday did not close higher. Thats not a sell signal, but not resuming the rally Thursday would start to form a top.

The trend change warning was followed by an entire session in negative territory. That”s not a sell signal, but rallying would have invalidated the warning.

Correcting Tuesday”s late drop — which extended Wednesday morning — was completed to within 3 ticks of 2051.00. That”s not a sell signal, but it expended as much buying pressure as possible without gaining traction for the effort. 

Also not a sell signal: Closing ABOVE pre-breakout highs. Wednesday”s selling pressure tested the prior range”s upper-end as support, what I call “lower prior highs” — and they held. That”s not a buy signal. But retesting Wednesday”s 2041.50 low during a relevant timing window would be… wait for it… a sell signal.

What”s Next… (Outlook and opportunities)
Thursday”s econ calendar is busy. That”s just early morning, and there”s only one irrelevant report Friday. Trending into or out of Thursday”s noon hour would be credible for extending in that direction through the weekend.