Trading Plan for 12/31

If Tuesday”s session was a glimpse of year-end bias… then Wednesday should be interesting. That bias need not be directional. It could also have revealed that there is a lot of room for play.

Pattern points… (Setups and technicals)
There”s not a lot that either buyers or sellers can accomplish when volume is on the verge of evaporating. Trending at all shouldn”t be taken lightly. Either the market is clearing a path for lower lows, or clearing out weak-handed sellers at lower levels. Either way, Tuesday”s price action was relevant — and predictive.

Predictive of what, I have no — well, I do have a couple of ideas. 

It”s likely that Tuesday”s selling was chipping away at support. But another bounce might be needed to launch the downleg that breaks lower. At least the morning will be vulnerable to that gravitational pull from above, which I discussed earlier Tuesday.

That is, if Wednesday”s open isn”t already trending down, under at least 2070.50, if not also under 2068.00. Almost nothing can marginalize sellers for the day.

What”s Next… (Outlook and opportunities)
Don”t forget that volume evaporates ahead of a holiday. Be careful not to force a trade.