Trading Plan for 12/3

If Tuesday”s rally had first probed under Monday”s lows… then a probe above last week”s highs would have been likely to last several days. Instead, the rally that began optimistically Tuesday by gapping up may soon miss that optimism when it is needed most — probing above last week”s highs.

Pattern points… (Setups and technicals)
Tuesday”s open gapped up a little and trended up a lot. All timing windows except the noon hour probed a fresh session high. Buyers gained traction for their efforts by exiting the bias environment above the noon hour”s high and then entering the final hour even higher.

Sounds bullish. A little gap up or a shallow opening dip would be likely to resume Tuesday”s rally. A retest of last week”s 2073.25-2075.25 highs would be likely, probably by 3-5 points. Not much higher, since buyers didn”t refuel before Tuesday”s rally by first probing under Monday”s lows.

Reversing down Wednesday is still an option. But since Tuesday”s buyers gained traction, that would require gapping down substantially — probably under 2057.50. The objective would be to probe under Monday”s 2048.25 low by 2-3 points.

What”s Next… (Outlook and opportunities)
Wednesday”s calendar is busy, and more high-profile influential events are still coming Thursday and Friday. Narrow ranging should be difficult.