Trading Plan for 1/29

If not for outstanding upside attractions… then how much lower might the market be already?

Pattern points… (Setups and technicals)
Friday”s “unfinished business above” at 2061.50 is not an urban legend, but it may as well be. It wasn”t enough of a reason to avoid that afternoon”s sell-off, or Monday”s.

Tuesday night”s rally through 2044.00 had plenty of room to be retraced without momentum reversing down, and to still be able to resume the overnight rally intraday. And yet, the open took advantage of that room, and not politely.

There are many reasons why Wednesday”s decline was avoidable — those are essentially the oldest and newest. Yet, the decline kept declining, and declining. Getting to 1997.25 — and then 3 points lower reacted to 3 points higher — extending down lower suggests that there is no sponsorship for a recovery.

What”s Next… (Outlook and opportunities)
If that sounds scary, it should. Contrarians might be interested in knife-catching this, but I would want to see how a test of 1981.00 behaves first. Gapping up Thursday back above might be a start at rejecting the decline, even if only to retrace back to where the FOMC statement was made at 2022.00.