Trading Plan for 2/11

If the Chartroom”s late outage ate the Market Wrap recording… then ask any questions in this post”s comments section. I”m in contact with the host now about resolving their issues.

Pattern points… (Setups and technicals)
Tuesday”s session was essentially the pattern that Monday could have been. Backing-and-filling through the morning, rallying through the noon hour, and retracing Friday”s losses.

Friday”s ~2068.00 highs weren”t tested. Had they been, then closing below them Tuesday would have been bearish. Instead, the rally”s patience keeps alive potential for extending higher.

Tuesday afternoon”s buyers traction for their efforts, which also keeps alive the upside potential. Exiting the bias environment above the noon hour”s high, and entering the final hour above the bias environment”s high, should reward buyers with control of Wednesday morning”s bias environment. Exiting the open under 2057.00 would suggest otherwise.

Exiting the open under 2053.00 could even trigger a “session-long decline” setup. I”ll review its parameters in the First Trade blog post if overnight action threatens it.

Otherwise, while a downdraft from higher levels remains possible, be careful being short. The template that we”ve been discussing since last week, which continues tracking, could probe new highs at a steep slope.

What”s Next… (Outlook and opportunities)
With a three-day holiday weekend around the corner, Wednesday”s close is similar to a pre-expiration WedEX signal. There are a couple of different conditions. But essentially, a fresh high close Wednesday that isn”t invalidated Thursday could keep alive the rally”s momentum into next week.