Trading Plan for 11/26
If fresh highs were left outstanding Sunday night… then does that prevent trending down substantially without any further hesitation? If anything, it makes trending down suddenly and substantially the only credible path down. Beginning any later this week would be likely to be only shallow.
Pattern points… (Setups and technicals)[pay]
This Monday’s comparison to last Monday’s pattern ended at the close. I had noted their similarities earlier in the day — gapping up from Friday’s new high close but going nowhere through the afternoon’s bias environment. There was difference before the open, Sunday night’s “new Globex trend extreme” at 1809.25. There was another difference later, the open’s gap up remained unfilled.
But both exited the bias environment with “unfinished business below.” Last Monday plunged to fulfill this objective before the close. This Monday left 1796.00 outstanding.
Last Monday’s late plunge fulfilled its objective, but it was too late to react up and prevent sellers from gaining traction. This Monday’s plunged a little in the last hour, and its sellers gained traction for closing under the noon hour and bias environment lows. But its closing price avoided negative territory.
And that alone — closing positive — could avoid duplicating a multiple session correction like the one that persisted through last Wednesday. Testing 1796.00 overnight would be more capable of holding, and being recovered before tomorrow’s open. Rallying first to retest the 1809.25 Globex extreme would be likelier to hold, having left outstanding the attraction down to 1796.00.
[/pay]What’s Next… (Outlook and opportunities)[pay]
Unless Tuesday morning were exited in trending mode, extending through some relevant prior support or resistance, then the balance of the week will be difficult to start any trending any later. That means testing either end of the range would be easier to react back into the range, if not back to the range’s opposite end.[/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.