Trading Plan for 1/15
If Thursday”s open doesn”t gap down… then Wednesday afternoon”s buyers will be rewarded for having gained traction.
Pattern points… (Setups and technicals)
Wednesday afternoon”s buyers gained traction for their efforts. This was determined by exiting the bias environment above the noon hour”s high, combined with the 3:10-3:20 timing window trending to fresh session highs (as a proxy to not entering the final hour above the bias environment”s high).
So, buyers should be rewarded with probing higher during at least the next timing window Thursday morning. That can be negated by gapping down under 1992.50”s last relative low.
The afternoon”s short-squeeze was signaled by exiting the bias environment above the noon hour”s high, after the same timing window probed fresh session lows. Since the session-long decline had yet to produce a counter-trend timing window, we were able to anticipate that would be the final hour.
Knowing the last hour”s likely uptrend allowed us to anticipate the short-squeeze from 1988.25 instead of waiting for 1995.50.
The squeeze”s minimum objective was to probe fresh session highs above 2007.00, probably also above 2010.00. The lower objective was only attacked through the cash session close, but the higher objective is being tested before the Globex open.
Wednesday is the second consecutive session to probe a fresh low, but end the day overlapping the prior session”s low — without also recovering the prior session”s close. That”s deep enough to trigger a bearish WedEX, but not deep enough for the signal to be more active than passive. Thursday”s oen could clarify that. Breaking back under the last session”s 2001.00 low would make the WedEX actively bearish. Gapping up above the 2023.75 last relative high would make the WedEX passively bearish.
WedEX reflects strong hands positioning into expiration. Wednesday”s close is the crescendo of that activity. It forecasts the bias Friday afternoon and Monday morning.
What”s Next… (Outlook and opportunities)
Reminder: I must be away from the screens during Thursday”s final hour. Unlike Tuesday, I will not update the site again before Friday”s open. This has been an unusual week, and that won”t be repeated — I appreciate everyone”s latitude!