Trading Plan for 2/17

Another day, another higher high…  And another target met. But this time without extending higher – despite having an entire session to attract sponsorship. Could be difficult absorbing Thursday’s econ reports.[pay]

Pattern points… (Setups and technicals)
Wednesday’s entire last hour ranged very narrowly. It was interesting, because it wasn’t.

The late-ranging hovered just under the morning’s 1336.00 high. The afternoon recovery didn’t do anything the morning rally had not. And not for lack of time. There was plenty of time to close higher, if that were the intent.

A lot of buying pressure was expended without gaining traction for the effort. And it was relevant buying, originating from a relevant level at 1327.50-1328.00 discussed before the open (yellow highlight).

In the end, resistance held. The cash session close peaked at 1334.25 (red dash), which defined the upper-end of noise around the 1333.00 target (red line). Futures closed at 1333.00.

What’s Next… (Outlook and opportunities)
Since Wednesday’s 1330.50 gap up was under Tuesday’s prior high, the session did not form an Island. A gap down under its low could be durable. Quickly breaking under 1328.00-1330.00 would might find obligatory support at 1325.00. But it would be only temporary on the way to retesting the oversold RSIs at Wednesday’s 1327.50 low.

Tuesday morning’s 1318.50 bias-down target remains outstanding, too. Both should be in-play shortly, unless Thursday’s open were to gap up above 1336.00.[/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.