Trading Plan for 12/26

If Wednesday were a normal day… then Tuesday”s setup would have resolved differently. But if it were a normal day, then would Tuesday”s setup have developed, at all?

Pattern points… (Setups and technicals)
Wednesday”s open didn”t trigger a sell signal. So, Tuesday”s bearish setup retained its potential. That potential could have inverted on a normal day. Indeed, Tuesday”s highs were probed by 1 point up to 2083.50.

Assuming that the bearish potential had not inverted up all day, then a normal day also would have allowed the setup”s sell signal to trigger in the afternoon. Wednesday”s holiday-shortened session didn”t have an afternoon. But the noon hour did slide 6-1/2 points to a fresh session low.

The late plunge didn”t  extend down. So, Wednesday closed within the prior session”s range, and within range of Tuesday”s pre-open “new Globex trend extreme.” It requires being retested intraday. Eventually. Wednesday”s high stopped 1 point short of it.

Quickly triggering a sell signal Friday would be more credible for trending down intraday since the hours are normal. But a weekend”s illiquidity is still impending. And this is still a very low volume environment.

What”s Next… (Outlook and opportunities)
Globex re-opens normally at 6pm ET Christmas Day. The chartroom will re-open then. Meanwhile, best wishes to all for a very happy holiday and joyous Christmas.