Trading Plan for 1/2

If not for Thursday”s holiday… then Wednesday afternoon wouldn”t have behaved like a Friday — making counter-trend sponsorship difficult to attract. .

Pattern points… (Setups and technicals)
Wednesday”s New Year”s Eve session was well-positioned simply to gravitate back up to “higher prior lows” at 2084.00. That”s the underbelly of Friday and Monday”s ranging. Retracing the overnight rally into the open didn”t extend down, and the morning”s bias environment ranged sideways.

Then the noon hour approached, and everything changed.

Last Friday and last Tuesday”s bearish setups had already reflected the rally losing traction. Wednesday afternoon”s drop was more about that. The decline gained traction for its efforts by exiting the bias environment under the noon hour”s low, and entering the final hour lower still.

Despite fulfilling the first of two targets at 2050.00 and 2040.00, that came too late to launch any retracement that might gain traction. Both 3-minute and 1-minute RSIs diverged positively, but their interim highs haven”t been recovered. Momentum is pointed down.

What”s Next… (Outlook and opportunities)
Momentum is pointed down, but that can be neutralized by gapping up enough. Like, above Wednesday”s 2072.00 bias environment high, which is 20 points above Wednesday”s close. That would form a “session-long rally” setup. Just gapping up above Wednesday”s 2064.50 last relative high could be very productive, albeit temporary. Perhaps the easiest path up is down, to fulfill 2040.00”s objective.