Trading Plan for 2/10

If the rally just needed an extra day to re-organize… then Monday”s fresh lows can be dismissed. Sunday night”s lower low was recovered back up to Friday”s cash session close. Monday afternoon”s lower low was recovered back into Sunday night”s range. All of which barely signals that the selling didn”t do new damage, and none of which yet signals momentum has reversed up.

Pattern points… (Setups and technicals)
So, round two Tuesday, for resuming last week”s rally? Reacting down from a retest of the two prior highs is predictable enough to have an impact. Reversing down into a new downtrend is too predictable to be credible.

That doesn”t prevent extending the reaction down overnight, or into Tuesday morning. Potential to 2032.00 remains outstanding since Monday”s late bounce didn”t recover a prior high like 2046.00.

Similarly, extending the bounce overnight would target 2049.00, whose recovery through Tuesday”s open would then target at least 2055.75. That”s just to satisfy the “unfinished business above” which was left outstanding from Monday morning”s bias environment. Multiple opportunities to invalidate it were rejected.

What”s Next… (Outlook and opportunities)
The likely resolution to resume the rally remains intact. That doesn”t preclude a sudden, steep and substantial drop — but there isn”t yet a sell signal, and its next opportunity to trigger is not until Tuesday”s bias timing window.