Trading Plan for 2/24

If not for the new Grexit drama… then Monday”s session could have ended flat like Monday did. But the range would have been much wider and less subdued. Not that Monday was terribly subdued — it was volatile enough to expect a substantial reaction to news..

Pattern points… (Setups and technicals)
Monday”s session, in retrospect, was defined by its fifth consecutive opening gap down, which didn”t extend. It wasn”t just the drop, and its lack of follow-through. It was the multiple intraday drops that didn”t extend.

Not extending down wasn”t for lack of trying. The open”s drop ultimately triggered the bias-down. The afternoon”s drop took RSIs oversold. There were interim drops, but they were book-ended by strong-handed sellers. And then they were overwhelmed.

Last week”s upside target at 2101.50 continues to be influential. It was tested during each of Monday”s timing windows. I had expected its last test to break 6-points lower, targeting 2095.50. Instead, it was recovered to momentarily probe a fresh high, closing 6 points above 2101.50.

Friday”s breakout wasn”t confirmed Monday. That”s not necessarily bearish, and Friday”s trend high close still requires at least one more.

What”s Next… (Outlook and opportunities)
Yellen”s testimony Tuesday morning may have inhibited trending Monday. The proximity to fresh highs without reversing down suggests at least a probe is likely. No durable trend in either direction is likely to be a reaction to anything Yellen is going to say.