Trading Plan for 11/25
If Friday’s new high close requires at least one more… then Thursday’s impending holiday will be very influential to whether the environment remains bullish for awhile.
Pattern points… (Setups and technicals)[pay]
Friday’s new high close, like last Friday’s new high close and like all new high closes on a Friday, now requires at least one more new high close. Not necessarily immediately on Monday, just as no new high close last Monday did not prevent eventually fulfilling the requirement for a new high close eventually.
Probing a new high intraday Monday would be likely to fulfill the required new high close. If not reversed down Tuesday, then the rally would likely remain intact well into the following week. Holidays, like Fridays and expirations, just don’t produce lasting trend extremes.
Reversing down Monday could extend down through Tuesday. But seasonal holiday bullishness would inhibit trending down any later as the holiday begins nearing to within hours. In Friday’s last blog post I described the most difficult timing window of the week to generate reversal sponsorship (that being the afternoon’s final hour that has been entered at a new session extreme). That equates to the most difficult environment to reverse which is 1-2 days prior to a holiday.
Not that the uptrend is very convincing. Friday morning triggered noN-bias and the afternoon triggered no-bias. Rallying without a bias-up isn’t necessarily bullish. Although Monday’s close may be vulnerable to being a new trend extreme, Monday’s open is vulnerable to trying very hard to reverse the trend down — it wouldn’t succeed, but that might not be obvious for several days.
[/pay]What’s Next… (Outlook and opportunities)[pay]
Join us at 9:30am ET for this weekend’s Saturday Strategy Session. It’s link is found in the blog’s sidebar. We’ll discuss the bigger picture, and review any charts of interest.[/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.