Trading Plan for 1/28

[pay]At the close (How the prior session ended)
Wednesday ended with an 11-point surge to new session highs at 1096.00. The morning’s low had been retested, tracking the template whose next leg is a sizable rally. It would be triggered by extending Wednesday afternoon’s rally through Thursday’s open.

Pattern points (And technical influences)
The rally could lose traction if overnight gains test either Tuesday’s 1100.00 intraday high, or Monday’s 1103.00 Globex high, without extending higher. Extending higher through the night would eliminate that risk.

Otherwise, a flat open Thursday should eventually attract an influx of buyers that suddenly resumes the rally at an accelerated pace. A shallow overnight dip that recovers pre-open would help this setup.

A shallow overnight dip would hold 1091.00, or recover it after attacking 1088.00. Back under 1086.00 would question whether the rally template was still in-play.

Bottom line (My underlying premise)
Any reaction to the President’s address will play out overnight and won’t be relevant at Thursday’s open. The two 8:30 econ reports will be more influential. The rally’s first milestones are 1107.50 and 1112.50, either of which could end it there. Any higher could put into play 1128.00 before the decline resumes.[/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.