Trading Plan for 12/5

If not for the ECB stimulus news… then Thursday afternoon would have been perfectly content to range narrowly. If not for the morning”s press conference disavowing a near-term stimulus, then the afternoon news might have been greeted from a better position to actually trend higher.

Pattern points… (Setups and technicals)
Thursday”s dry cleaners setup almost triggered, but for a last-minute break lower as the first hour was ending. Still, the origin wasn”t optimal, so 7-9 point dive was retraced entirely into the noon hour.

All of which IS a dry cleaners setup, which is where the afternoon was headed. At least, until news of an ECB stimulus hit. Spiking up 7 points couldn”t change its origin being a dry cleaners setup, so it was retraced entirely, too. And then some, trending back down to and through the spike”s origin.

Friday”s impending Employment Situation report was one culprit for inhibiting trending. Thursday”s choppiness ahead of it — intended, or not — has loosened the joint to allow more play or actual trending after the report.

What”s Next… (Outlook and opportunities)
Overbought 1-minute and 3-minute RSIs at Thursday”s 2077.25 new high do not require a retest. They were the product of a knee-jerk reaction to news, and not to strong-handed buying pressure. And there being no complexity to the spike up to 2077.25 also frees it from any requirement to be retested. But its retest is likelier than not, so long as price hasn”t trended away. Meanwhile, oversold RSIs at Thursday”s 2061.25 low do require a retest.