Trading Plan for 11/21

Don’t forget about the weekly Saturday Strategy Session… Its link is in the blog’s sidebar. Start time is 9:30am ET, but you may log-in up to one hour earlier.

Pattern points… (Setups and technicals)[pay]
Wednesday’s Expiration Indicator was at work probably at work in absorbing Thursday night’s 15-point rally up to 1230.00, and reversing it into negative territory down to 1209.00.

But the downward bias it predicted is applied mostly to Friday afternoon and Monday morning. And while Friday afternoon also absorbed a rally — from 1213.00 up to 1220.00 — it lacked the spectacle of the morning’s retracement. Nevertheless, it fulfills the downward bias.

Monday morning is also likely either to trend down or to retrace overnight strength. Higher highs may yet test 1222.50 or 1225.00 — perhaps 1230.00 — but then likely reverse down. Recovering 1225.00 through the open could gain traction to rally, but the Expiration Indicator’s downward bias otherwise gets every benefit of the doubt.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Another weekend, another string of headlines. The chartroom will be available at Sunday night’s Globex open, and I’ll be in there then or soon after to comment. [/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.