Trading Plan for 2/23

If Greece can be persuaded not to leave the Euro… then the rally must have pretty good friends in pretty high places. No, seriously.

Pattern points… (Setups and technicals)
Breakout! Friday”s close was the first one above a multi-session range. If confirmed by a second consecutive higher close on Monday, then at least an eventual third higher close would be required. Being a new trend high close on a Friday, a higher close is still required, but only eventually.

The latter setup may be more relevant after Friday”s 25-point high-to-low rally. And not just because it seems to have fully discounted the day”s anti-Grexit developments. But Friday breakouts aren”t often confirmed on Monday. And characteristics of the week”s multi-session range already suggested its next upleg would be temporary.

Friday”s rally did create room for some initial selling that doesn”t damage the upward momentum. But that”s the open. Probing higher highs at any point intraday wouldn”t prevent an afternoon sell-off that puts the rally on defense.

What”s Next… (Outlook and opportunities)
We”ll talk about different possible opens at the weekend”s Saturday Review. We”ll also review any stock chart requests. Click here as much as 30 minutes before the 9:30am ET start time.