Trading Plan for 1/15

If Tuesday’s rally doesn’t resume immediately Wednesday… then resuming Monday’s drop shouldn’t be far behind.

Pattern points… (Setups and technicals)[pay]
Tuesday’s close was above the noon hour and bias environment highs, so buyers gained traction for their effort. At least, a little. Perhaps they just prevented sellers from regaining traction.

The bias environment high consisted of 1-2 momentary ticks higher. That was pierced momentarily by 1-2 ticks while the bias environment was lapsing. But the final hour was entered from back under the noon hour’s high. Probing higher anyway was retraced again back under the noon hour’s high. At least sellers didn’t gain traction.

Extending higher Wednesday without delay, and without reversing down from the open, would still be bullish. Tuesday afternoon’s hesitation would become moot. But not having gained traction at Tuesday’s close, gapping down is essentially the only path down available Wednesday morning.

[/pay]What’s Next… (Outlook and opportunities)[pay]
The quarterly/annual earnings onslaught continues Wednesday, along with the afternoon’s Beige Book. It’s all influential, but so is position-jockeying ahead of Friday’s expiration. So, the WedEX indicator has a good chance at triggering an active signal. [/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.