Trading Plan for 12/29

Tuesday night’s range suggested things… were heating up. Wednesday’s action suggests the rally is cooling down. But one day — let alone one overnight session — does not a trend make. Thursday’s resolution could dictate early January’s action.

Pattern points… (Setups and technicals)[pay]
Wednesday morning’s slide down to 1245.00 was retraced up to 1249.00, eventually. The bounce was reversed down to 1243.00, eventually. The close was still testing 1245.00.

1245.00 will break free. Eventually. But that’s a long time to range sideways. Unless Thursday’s open were to compensate for the delay by gapping up above 1249.00 and extending higher, the pattern remains likely to resolve down.

My 3-day weekend indicator triggered. No prior low was broken, only last Thursday afternoon’s narrow range. And the break held through the close, so its sponsorship gained traction for the effort. The indicator was somewhat bearish, but certainly not bullish.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Get familiar with Thursday’s econ calendar. It is busy, and influential. But it can’t be relied upon to drown out the noise of Eurozone headlines. And they had plenty of impact in the vacuum of Wednesday’s thin econ calendar. [/pay]

Look for at least one update overnight or ahead of the Morning Market Tour… My thoughts on the day’s econ calendar are linked here.