Trading Plan for 2/4

If Tuesday”s dip had resolved up sooner… then the balance of the session would have trended much higher. Not that adding 10 points was anything to sneeze at. And it avoided a potential plunge setup. But it was hard fought.

Pattern points… (Setups and technicals)
In other words, there”s still pessimism. After gapping up 7 points, and after extending another 18 points, after trending higher through the afternoon… there”s still pessimism. 

Pessimism is potentially bullish from a contrarian perspective. So, Tuesday”s 25-point rally is entirely capable of extending higher Wednesday.

Nothing prevents the pattern from extending higher without delay. But nothing requires it, either. Only Tuesday afternoon”s bias environment exit reflected momentum, and the final hour”s entry did not, so an interim dip Wednesday morning is possible.

What”s Next… (Outlook and opportunities)
Gapping up and extending higher through the morning would all but require probing recent highs above 2059.00-2062.50 the same day. Gapping down under the last relative low at 2032.00 wouldn”t necessarily reverse the trend back down, but the session would be on defense.