Trading Plan for 11/4

If the rally”s durability depends on pessimism… then Monday”s late-afternoon slide is living on the edge. It originated from fresh highs, which reflects optimism. Closing under the morning”s low could have been catastrophic..

Pattern points… (Setups and technicals)
Monday”s higher close resolves one thing. It”s not very relevant, until it is. That”s the unlikelihood for a trend”s extreme close to be on a Friday. Immediately trending down from Friday”s new trend high close would have been only temporary, since a higher non-Friday close was required. Monday”s new high close need not be the last for this trend, but it can be.

And it might be part of the trend high, at that. 

Monday”s 2019.25 intraday high neutralized the outstanding “new Globex trend extremes.” Unrelated to that, Monday”s 2012.00 close was back under the prior session”s highs. And sellers sort of almost nearly borderline gained traction. Kinda. The bias environment”s exit slid back to the noon hour”s lows from above its highs, which wasn”t bullish.

Still, the afternoon slide only slightly pierced the morning”s low and held it. Bullet dodged. And the 2021.25 bias-up target became “unfinished business above.” Neutralizing that Tuesday won”t tolerate hesitating again, let alone reversing down, if the rally intends to extend.

What”s Next… (Outlook and opportunities)
Monday”s close firmed back up toward 2013.50 resistance, but no higher. An attack on 2015.00 was likely, so its recovery would target fresh highs and presumably 2022.00. I”ll continue looking for fresh highs — however temporary they may be — unless 2006.00 were broken through Tuesday”s open, which could extend down to 1990.00.