Trading Plan for 12/2

If Monday”s sellers hadn”t been so impatient… then their repeated probes under “lower prior highs” could have extended the decline intraday. It could still extend down Tuesday. Until recovering all of the tests” interim highs — the earliest remains outstanding, up to 2059.00 — it”s possible that Monday”s sellers succeeded at chipping away at support. But without already breaking lower at Tuesday”s open, Monday”s sellers become less and less relevant.

Pattern points… (Setups and technicals)
In between those sellers chipping away at support, interim bounces were chipping away at resistance. Two afternoon tests of the 2058.00 area weren”t rejected so deeply that sellers gained traction. A recovery Tuesday isn”t precluded.

Sellers didn”t gain traction either. The bias environment”s exit and the noon hour”s entry both were within the noon hour”s range.

None of which precludes probing lower lows overnight. But if Tuesday”s open isn”t already extending down, then it”s probably because the open is already recovering.

Any recovery would likely be designed only to test last week”s highs. They peaked at an Ascending Triangle, whose first reversal down rarely is fatal. Probably, the question is whether the first reversal ended at Monday”s 2048.25 low, or whether 2030.00 or 2022.25 is in-play.

What”s Next… (Outlook and opportunities)
Monday”s close trended down, and the afternoon”s 2058.50 high printed during the bias environment. I had planned to dismiss this potential setup since the afternoon”s range had only narrowed. But post-close action immediately extended down to fresh lows. So, gapping back up above 2058.50 Tuesday would form a “session-long rally” setup. I would still like that recovery to include the morning”s 2059.00 high to deserve greater confidence. Otherwise, any shallower opening strength would remain vulnerable to probing under Monday”s lows.