Trading Plan for 12/16

If Monday”s sellers still couldn”t extend Friday”s late drop… then is the decline”s sponsorship fully satisfied, or just patiently awaiting a bounce into Wednesday”s FOMC news (and perhaps also out of it)?

Pattern points… (Setups and technicals)
Monday”s drop was isolated to one timing window (the morning”s bias environment). It originated from 2 points under the origin of Friday”s last drop (2012.50). It was recovered back to Friday”s 1995.25 cash session close. Price action ranged sideways into the close without gaining traction either way.

The decline gained no new traction for its efforts. But it didn”t relinquish any ground, and buyers gained no traction either. There is no accumulation, and other requirement to reverse the trend up. Reversing the trend up would be only noise. That is, until it formed an accumulative pattern or recovered high enough.

Having avoided extending down aggressively through Monday”s close, declining aggressively at Tuesday”s open would still be credible for resuming the decline. Otherwise, the alternative would likely be a corrective bounce into Wednesday afternoon”s FOMC.

What”s Next… (Outlook and opportunities)
Extending down aggressively early enough Monday had the opportunity to tumble 70 points. That door re-opens through Tuesday morning. But escaping one more timing window without trending down would more likely marginalize sellers through the following morning.