Trading Plan for 1/9

If the rally from Tuesday”s lows is a temporary correction… then it couldn”t have traded any higher intraday or closed any higher than it did. Not unless the rally is on its way to new highs. Which it will likely be, if the week were to end above Thursday”s high.

Pattern points… (Setups and technicals)
The corrective bounce could have ended at 2022.00, or 2029.00. Testing 2044.00 so quickly Thursday morning left only 2052.00 — and the room for noise above it at 2055.50 and 2058.25. Both met, both held.

At least, 2055.50 was still being overlapped. Closing under 2052.00 would have been more convincing that upside momentum was waning. Having extended to this degree for this duration without yet reacting down, extending any higher at Friday”s open would help to confirm new highs. The alternative open should be down considerably.

Opening significantly higher or lower shouldn”t be difficult. The pre-open Employment Situation report is a reliable catalyst.  Regardless, just not closing lower Friday would further suggest the ultimate resolution is new highs.

What”s Next… (Outlook and opportunities)
There are no preliminary levels before an Employment Situation report. Exceeding either 2052.00 below or 2058.00 above overnight would be likely to extend in that direction ahead of the payrolls report.