Trading Plan for 11/24

[pay]Pattern notes.
Monday’s gap up extended 9 points higher. Most of it was returned by noon, enough that an afternoon reversal would have been credible. The afternoon returned the rest of the post-open gains, along with an extra point, and still didn’t extend down. The market refused both opportunities to decline more than just within its own range. The selling did not damage the chart, and buyers were refueled.

Falling 8-9 points off the session high, without damaging to the chart. That’s tricky. Now comes the really tricky part: resuming the rally. Resistance at 1105.00-1107.00 isn’t going to give way easily, probably not without gapping above it. The gap back to last Wednesday’s high was filled, neutralizing its attraction to higher prices. Last Monday’s 1111.00 pivotal high was pierced. That’s the high prior to the actual high, which all but requires a test of the 1112.00 actual high, up to at least 1115.00.

Alternatively, snapping back up from initial weakness would help to kick start a recovery leg. That’s tricky because initial weakness would threaten 1099.00-1100.00, where sellers could gain traction. A drop would target the gap back to Friday’s ~1090.00 close, where any support would be brief.

Indicators and Internals.
No unfinished business remained outstanding at Monday’s close.

Tuesday’s opportunities.
The econ calendar is remarkably busy. The steady sprinkle of news has been helpful to the rally. But not so much during deluges. And Tuesday’s calendar is a flood. Initial trending can’t be taken for granted until 10:15. Even if it could, there’s the 2:00 FOMC Minutes to restart things.[/pay]