Trading Plan for 12/29

If not for the session”s sloooow volume… then probing new highs would be very bullish. Not that price can”t extend higher near-term. But normal volume might have prevented new highs altogether.

Pattern points… (Setups and technicals)
New trend highs on Fridays aren”t often reversed intraday. Friday held up high enough and long enough to make a downdraft unlikely. That didn”t prevent dropping 5 points through the close to 2083.00. But the timing did make a downdraft irrelevant.

Despite “the path of least resistance” being up, Friday”s bias environment high was held through the close. Resistance at 2088.00 had been probed already by 3 ticks before the last 60-90 minutes got underway. Buyers would gain no traction without closing above 2088.00 after having tested it intraday.

Despite potential for drifting higher up to 2093.00, the last 60-90 minutes took an alternate route. With room for noise down to 2085.50, a late 5 point plunge slid through it to 2083.00. But it gained no traction, since the noon hour”s prior low was overlapped by every bar that probed under it.

And now the rally has a second session spent exclusively above all prior intraday ranges. Late plunge notwithstanding, Friday”s session did probe higher highs intraday instead of reacting down from the open like Tuesday. But neither session”s buyers gained traction, leaving the rally”s momentum vulnerable to reversing down from here.

What”s Next… (Outlook and opportunities)
Reminder: There”s no Saturday Review during holidays. Be sure to ask during trading hour for any stock chart analysis — especially this last week of the year if making tax decisions.