Trading Plan for 1/7

If Friday’s session never really trended… then does its new high close qualify as a trend extreme? It does, but it is vulnerable to reversing down into a pullback.

Pattern points… (Setups and technicals)[pay]
New high closes on Fridays rarely mark a trend’s peak. This doesn’t preclude Monday from dropping, or from dropping sharply. But any immediate drop would be only a reaction or a pullback, and only temporary.

1461.00 was probed late Friday up to 1463.00. The 1458.75-1460.75 close was essentially still testing 1461.00, neither rejecting it nor exceeding it. Higher highs remain likely, presumably up to 1464.25-1465.50.

Friday’s last-minute reaction down to 1457.50 did not affect the upside momentum. It was already lacking for the slow upward slope. But probably should extend higher without delay to avoid a deeper pullback.

A pullback has room down to 1447.00 without suggesting a greater dip underway, like down to 1413.00. Diving that deeply would likely develop over multiple sessions.

[/pay]What’s Next… (Outlook and opportunities)[pay]
There is not a Saturday Strategy Session this weekend… NO weekend session.[/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.