Trading Plan for 11/7

If a clear winner is known Tuesday night… then must Wednesday trend? It probably should. The late-morning rally was neither rejected nor extended throughout the entire afternoon, so a resolution either way is likely.

Pattern points… (Setups and technicals)[pay]
Maybe Monday afternoon’s rally was a delayed version of what Monday morning failed to produce. But Tuesday morning’s version was a better portrayal. Gapping up above the prior session’s highs, extending sharply higher — aggressively, at one point — and also closing back above Friday afternoon’s highs.

It’s as if Thursday’s breakout is being given a second chance to confirm.

Tuesday’s entire afternoon expended selling pressure — from the 1429.25 noon hour high back down to 1421.75 — while correcting the morning’s rally. Last Friday afternoon’s 1421.50-1422.50 highs held as support through the close.

If the second chance can’t be exploited to resume the rally effort, a third chance is unlikely.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Election results will be a big distraction Wednesday. Keep in mind that the only reason for this possibly being bullish is that pre-election flux inhibited the rally. The details are not nearly so significant as the event becoming history.[/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.