Trading Plan for 1/26

Seems like old times… There was a time when FOMC announcements were framed by handicapping the likelihood for raising or lowering rates. Price action was always volatile in the announcement’s wake. Those days are long gone, so the Fed’s marketing department launched the quarterly presser to incite activity. And it works…

Pattern points… (Setups and technicals)[pay]
1343.00, here we come? That’s the next higher objective above 1311.00. And Wednesday finally closed above 1311.00.

Prior probes above 1311.00 reached up to 1318.25 (Monday morning). Closing above it Wednesday triggered the signal. A second consecutive higher close Thursday would confirm.

One challenge to extending higher is that Wednesday’s cash session close was testing 1321.00. This was the afternoon’s renewed bias-up target that was put into play by (barely) exceeding the 1315.50 bias-up target through 1:20.

Was too much buying pressure satisfied already for Thursday to confirm Wednesday’s breakout? Firming aggressively above Wednesday’s 1324.75 high through the open should gain traction to extend higher. Otherwise, at least the morning would be vulnerable to a dipping back to 1311.00.

[/pay]What’s Next… (Outlook and opportunities)[pay]
A dip could still recover Thursday afternoon to confirm Wednesday’s breakout. Just avoiding a meltdown would allow another rally attempt Friday. But the alternative to extending higher Thursday or Friday probably is a meltdown of sorts, which would be obvious by noon, if at all.[/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.