Trading Plan for 1/15

If third time’s a charm… then Tuesday’s market should expand its volatility, if not resume trending. The market is starting to wear out its welcome with this area.

Pattern points… (Setups and technicals)[pay]
For the second consecutive session, fresh highs overnight were not revisited intraday. Price action above 1467.50 both Friday and Monday was limited to pre-open. Post open was spent reacting to initial weakness.

For the third consecutive session, 1467.50 attracted late price action. Its rejection Monday down to 1463.00 was recovered to within 3 ticks of 1467.50. That was almost a third consecutive close there.

For the third consecutive session, closing price action was very much influenced by the rally’s 1464.25-1465.50 target. Both Friday and Monday staged a late effort to rally back above it..

This has not been accumulation. But price action hasn’t been trending downward, either. While a sudden break lower is possible, a sudden break may be the only path lower. Otherwise, there is a vacuum above and price action will try to fill it.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Like Monday’s open, if sellers aren’t in control Tuesday morning, then fresh intraday highs would be likely. Tests of recent overnight highs at ~1471.25 would probably extend to 1471.25, as well. Opening under 1461.00-1462.00 would instead apply new downward pressure..[/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.