Trading Plan for 12/1

If low volume trending is the work of weak hands… then Friday”s drop through the noon hour makes at least a temporary probe of fresh highs likely.

Pattern points… (Setups and technicals)
Friday”s session was identical to Wednesday, in every possible way. But one.

Overnight weakness had essentially greeted the cash session with a test of the bias-down signal. Holding its test triggered no-bias, and put into play an offsetting test of the bias-up signal. After finally fulfilling the upside objective, a more concerted trending effort began.

This is where things got a little different… Wednesday”s next trending effort had extended the rally. Friday”s trending retraced and reversed the morning”s recovery. The 2074.00 bias-up signal had been tested to within 3 ticks before reversing down 10 points to test 2063.50.

I”m giving a benefit of the doubt to Wednesday”s post-close high at 2075.25 being a “new Globex trend extreme.” It was printed right after Wednesday”s close, and it was almost a single surge, not very complex. Still, it”s likely to be retested intraday, if not required.

Meanwhile, Friday”s 2063.50 low is likely to be retested. It stopped just short of actually touching its prior low, its RSIs were oversold. Holding its retest through Monday”s opening 15 minutes of volatility would likely launch a retest of 2075.25. Alternatively, rallying first to 2075.25 would likely reverse back down to 2063.50 — and lower.

What”s Next… (Outlook and opportunities)
There is no Saturday Review on holiday weekends. Chartroom will be available Sunday night for the Globex open. See you Monday!