Trading Plan for 12/24

[pay]Pattern notes.
Normally price action is uneventful during holiday-shortened weeks. Normally it is not in the midst of an ongoing bear market. Monday’s drop didn’t stray from the norm, but rather defined it. If Tuesday morning’s astounding indifference to eight econ reports was standard during previous Christmas weeks, Tuesday afternoon’s drop is the new standard.

Monday’s low already required a retest due to the character of the bounce out of it. Now Monday’s low requires a retest because Tuesday’s last-hour lows probed Monday’s “pivotal low” (the low prior to the actual low). Christmas Eve’s half-session tends not to be very volatile, let alone trend. We’ll see.

Indicators and Internals.
RSI seemed to diverge positively into Tuesday’s last-minute low. But it was higher compared to a prior low that was not itself oversold. There is no requirement to rally Wednesday.

Wednesday’s opportunities.
If sellers don’t take control early enough, buyers might be sucked into the void. Above 862’50-865’00 would target 872’00-873’00. Three more econ reports are due at 8:30, so Monday’s 852’75 low could be probed before Wednesday’s cash session open. Under 849’00 would put into play 836’75. Any lower would then signal that the retest of last month’s lows was underway.

Reminder: My availability Friday may be limited to only the Globex and cash session opens. Regardless, I will not be monitoring the market that afternoon... Have a great holiday![/pay]