Trading Plan for 11/27

If this were not a holiday-truncated week… then Tuesday’s session would have neutralized at least the attraction above or below. Perhaps it could have tested both. At least Tuesday attacked both to within 2-3 points each. Both remain outstanding.

Pattern points… (Setups and technicals)[pay]
Actually, Tuesday’s low came within 3 points of the 1796.00 unfinished business below. Tuesday’s high came within 2 points of unfinished business above at 1809.25. There is no timing requirement for retesting either.

Tuesday’s high did neutralize the retest of Monday’s 1806.25 opening gap. Its reaction down was delayed, but it was still productive, falling nearly 6 points to 1801.25. So steep of a reaction down doesn’t necessarily mean sellers are stronger-handed — the plunge stopped magically upon retracing 61.8% back to the morning’s low, which is a normal corrective measurement.

The new high close requirement wasn’t so much fulfilled as it was neutralized Monday closing at Friday’s futures close. Firming into Tuesday afternoon’s 1807.00 high was promising to definitively fulfill the new trend high close requirement, but that didn’t happen. Regardless, the message is not to become complacent if new highs are probed intraday.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Wednesday’s session is normal-lengthed, but its participation is not. Liquidity may be noticeably lower in the morning. Liquidity will only be less in the afternoon. Remember that this is a risk unto itself, not only for interfering with entry and exit attempts, but also for obscuring the price action upon which those entry and exit decisions are made. Many traders choose not to participate in such an environment. [/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.