Trading Plan for 12/31

If Tuesday’s session isn’t trending early… then it might not trend at all (again) before the close. At least, nothing until very late in the day.

Pattern points… (Setups and technicals)[pay]
Monday morning’s dip to its 1833.50 objective reacted up to 1836.50 resistance. Which reacted back down to 1833.50 and back up to 1836.50. Then almost back down to 1833.50, before spiking up to almost… You get the idea.

Trending is difficult in lower volume, lower participation environments. This is that, but it’s something else, too.

Monday’s final hour was entered above its noon hour and bias environment highs. That wasn’t very difficult considering the narrow range, but it also wasn’t lower. And meanwhile the close was at or within ticks of 1836.00 for the third consecutive session.

The action isn’t random. It’s not trapping shorts, nor is it rejecting 1836.00. The next leg probably won’t be a reaction to current sponsorship — there is none — so any initial trending either up or down would be credible for extending in that direction intraday. Whether Tuesday before things slow down into the afternoon, or before heading into the weekend, its potential would be to trend 20 points either way, to 1816.00 above or to 1856.50 above.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Monday’s post-close Market Wrap was extended to discuss bigger picture influences and resolutions, and to do instant analysis of several stock requests. I’ll link its recording from the Strategy Session page, but it will also be available as Monday’s Market Wrap.[/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.