Trading Plan for 2/12

If Tuesday’s high were any higher or held on any longer… then it would have extended the past week’s rally too high to be only a correction. It may, yet. But the verdict is still out.

Pattern points… (Setups and technicals)[pay]
Similar to Monday’s open, not already trending down at Tuesday’s open made the morning likelier to probe fresh highs. The bias-up target was already being fulfilled when the bias timing window put it into play. That’s optimism.

Then the bias-up environment extended higher, through its target. That’s rare. And optimistic. Extending higher by 10:15 would have signaled strong-handed reinforcements had arrived. The delay doesn’t reflect patience.

All but the final timing window Tuesday trended higher, and without once probing back under a prior low to refuel buyers. Optimism, and optimism.

There’s more, but none of it matters in the bigger picture. Not unless expending buying pressure has fulfilled a target. And held it. Like 1818.00-1819.00. The highest calculable level for the past week’s rally to still prove it is only a corrective bounce. Closing any higher would target new highs. Otherwise…

[/pay]What’s Next… (Outlook and opportunities)[pay]
Tuesday’s last signal was a sell triggered under 1817.25 and targeting at least 1814.00. Its target was met, and probed by several ticks a couple of times. It held the prior low, which was tested too late anyway for breaking under it to have been predictive. If anything, it refueled buyers for trying to resume the rally. Gapping down further would leave unfinished business above, likely eventually to retest Tuesday’s high.[/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.